§ Mr. WebbTo ask the Secretary of State for Defence what estimate he has made of the cost of the retrospective recognition of pre-1975 military service for pension purposes. [10433]
§ Mr. IngramBefore 1975, and currently, pensions were awarded to Service personnel who completed at least 22 years' reckonable service (or 16 years' reckonable service in the case of officers). Gratuities were awarded to those who did not qualify for a pension but had completed 12 years' reckonable service (or nine years in the case of officers).
It has been the long-standing policy of successive Governments that changes to improve benefits from public service pension schemes should normally be implemented from a current date for future service only.
In the case of the Armed Forces Pension Scheme, in order to calculate the precise cost of awarding pension rights retrospectively, my Department would have to identify and assess the potential entitlements of all service men who left service before April 1975 without completing enough service to qualify for a pension. There are probably several hundred thousand if not more than a million former service men in this category. An accurate estimate could, therefore, be provided only at disproportionate cost.
None the less, we can be clear that the cost of awarding pensions retrospectively would be considerable. In addition, such a retrospection could not be applied solely to former service men, and would require a change for all public service pension schemes.