§ Mr. RendelTo ask the Secretary of State for Defence if he will estimate the cost of backdating the changes which became operative from 1 April 1975 to the Armed Forces pension arrangements to cover all those who retired before 1 April 1975. [70230]
§ Mr. SpellarThe only change to the Armed Forces Pension Scheme which became operative on 1 April 1975 was the introduction of preserved pensions for those with insufficient service to qualify for an immediate pension. In line with public service pension scheme practice the improvement was not applied retrospectively to those who had already left the Armed Forces. An estimate of the cost of backdating the change is not available and could be obtained, if at all, only at disproportionate cost.
Furthermore, costs to MOD could not be considered in isolation from other Government Departments. It is the general practice for all public service pension schemes, when introducing improvements, to apply them only to those serving at the date of the change. If the pensions of all retired Scheme members were retrospectively increased each time a new improvement was introduced, changes to schemes would become very expensive and probably unaffordable.