HC Deb 04 May 1999 vol 330 c298W
Mr. Mackinlay

To ask the Secretary of State for Defence on what basis the annual increase in ex-service pension rates are calculated; and if he will list the increases awarded in each of the last 10 years. [82574]

Mr. Doug Henderson

Starting rates of pension for newly-retired ex-Service personnel are linked to pay and increase each time there is a pay award. The pensions of people who have already retired are uprated annually in line with the Retail Price Index (RPI). The mechanism was set in the Pensions (Increase) Act 1971 and the Social Security Pensions Act 1975. The increase is determined by the movement of prices between September and September and is paid the following April. The last 10 years rates of increase are as follows:

Year Percentage
1990 7.6
1991 10.9
1992 4.1
1993 3.6
1994 1.8
1995 2.2
1996 3.9
1997 2.1
1998 3.6
1999 3.2

Mr. Mackinlay

To ask the Secretary of State for Defence what is the rate of service pension currently paid to an Army major who retired at the age of 55 years after 34 years reckonable service on 1 April(a) 1975, (b) 1976, (c) 1977 and (d) 1978. [82576]

Mr. Doug Henderson

The current rates of Service Pension which would be paid to an Army Major who retired at the age of 55 years after 34 years reckonable service on 1 April of each of the following years are:

  • 1975: £16,999
  • 1976: £14,196
  • 1977: £12,776
  • 1978: £14,692.

Mr. Mackinlay

To ask the Secretary of State for Defence in what circumstances and for what reasons ex-servicemen, of the same rank and length of service, receive different rates of pensions under the Armed Forces Pensions Scheme. [82577]

Mr. Doug Henderson

Pension rates are directly linked to pay, and new starting rates of pensions are set each time there is a pay award. All those who retire will therefore have a different level of pension than those with the same rank and length of service who retire in a different pay year. After pensions are awarded they are uprated annually in line with the retail price index (RPI). Unless, therefore, military pay increases precisely in line with the RPI, the difference in pensions between two pay years will be permanent.