The explanatory memorandum which was circulated with the Bill will have given Deputies a picture of the matters to which the Bill relates. It may, however, be helpful if I speak about the various provisions in a more detailed manner than it was possible to deal with them in the memorandum.
The Government have accepted the proposition that the rates of military service pensions laid down in the Acts of 1924 and 1934 should be increased in the light of the increases granted in the case of other State pensions. The increases provided in the Pensions (Increase) Act, 1950, have been taken as the standard, since they apply to other bodies of State pensioners, and, on that basis, a table of increases has been prescribed in Section 2 of the Bill. Generally speaking, the increases will operate as from the 1st January, 1953.
It is provided in the Act of 1924 that, where a member of the permanent force holds a certificate of military service, no pension will be paid to him until he has left the permanent force. The pension is then calculated on the substantive rank at that particular time or on the 1st February, 1924, whichever of those ranks is the higher. Because, however, of the proposed abolition of abatement of military service pensions by reference to remuneration from public funds, it seems only fair that the persons concerned— there are less than 100 of them—should have the opportunity of taking their pensions now if they desire to do so, and Section 3 provides accordingly. It may be that some of them would prefer to wait until they have left the Army; an officer, for instance, who felt that he would be likely to receive further promotion and so, on retirement, have a higher military service pension, might regard it as being to his advantage to wait. If there are such cases, I have no desire to deprive them of the rights they possess under the Act of 1924. Where any person concerned wishes to take his pension before leaving the Army, he may have it as from a date not earlier that the 1st January, 1953, and it will be calculated on his substantive rank as on the date of commencement of the pension. He will then have to exercise the option within three months after the passing of the Bill or the date on which he is awarded the certificate of military service, whichever is the later. He cannot exercise it subsequently, andhaving exercised it, he cannot subsequently alter it.
Section 4 of the Bill has been included in an effort to meet a late request on the part of the Old I.R.A. associations. It appears that, under the Acts of 1924 and 1934, it was open to a person employed in the public service at the time when he was rendering military service within the meaning of the Acts to choose to surrender his military service pension and to have the period covered by that pension included for the purpose of superannuation pension and allowances. The method of calculation was an extremely complicated one and I do not intend to trouble the House with it now. I understand that the vast majority of the people concerned opted to retain their military service pensions and that only 14 or 15 persons found it more advantageous to surrender their military service pension. The request to me was that the provisions I have mentioned should be repealed so that it would be possible to count the periods in question for the purposes of both military service pension and civil pension. I am sorry that I have found myself unable to meet that request in full. I am, however, able to do something which, I hope, may be regarded as a compromise. It is possible, I am told, now that the military service pensions are being increased and abatement removed, that some of those who gave up their military service pensions may find that, taking the long view, it would have been better for them not to exercise the option they did. Accordingly, I propose to give them the opportunity of reconsidering their position. This section will enable them to do so, and again each person concerned will have to take the decision for himself.
If anybody changes his option, he will have to do so from the time of his original option. He will, by doing so, be in debt to the State as on a current date, because the original exercise of the option meant that he got more by taking an enhanced superannuation than he would have got by taking his military service pension and lower superannuation. In other words, he profited by making the original optionand will, therefore, have something to refund by going into reverse, even though the reversal of the option will mean an eventual financial advantage. Actually, I do not think there is much in it. It may be, in fact, that nobody will wish to change his option. As I have said, I have merely made it possible in response to the request of the Old I.R.A. associations.
I now come to what I might describe as a hardy annual. For years, successive Ministers for Defence have been extending the latest dates of application for military service certificates, and in the Act of 1949 people were given up to the 7th June, 1951, to petition for the re-examination of rejected applications made under the Acts of 1924 and 1934. Nevertheless, late applications and petitions continue to be received, although it is difficult to understand why that should be so after all the opportunities given over the years. I am now providing by Section 5 of this Bill for a further extension for petitions, the period being six months from the passage of the Bill. I also intend to make regulations providing for a similar extension of time for receiving applications for service certificates from persons who had not applied before the expiration of the previous time limit, that is, the 7th June, 1952. I think that the House will agree that, after 28 years in the case of one Act and 18 in the case of the other, it is about time that everybody who feels he is entitled to a certificate should now set about applying for it.
Section 6 of the Bill will get rid of a long-standing grievance—the abatement of military service pensions because of the payment of remuneration, pensions or allowances out of public funds or by a local authority. The first step in the mitigation of this grievance was taken in the No. 2 Act of 1945, and the Government have now decided to abolish abatement entirely. I understand that almost 1,800 persons will benefit by this course and I am glad that it has been found possible to accede to the many representations made by all parties and by so many groups. It follows from the abolition of abatement under the Military Service Pensions Acts themselves thatmilitary service pensions should no longer continue to abate or be abated by pensions payable under other Acts, and Section 6 also makes the necessary provision in this connection.
I have, therefore, tried to meet the requests that have been made from time to time for the amendment of the Military Service Pensions Acts. Abatement is being abolished; pensions are being increased; and I have endeavoured, as I said, to compromise to the fullest possible extent on the request that the same periods of time should count for military service and superannuation.
There is another feature which I also feel I should mention and which, I think, is not always sufficiently appreciated. A military service pensioner who finds himself incapacitated through age or infirmity is no longer entirely dependent on his pension. Provided that his means are below the appropriate annual sum he is eligible for a special allowance, and these allowances, it must be agreed, have certainly helped to improve the lot of persons who gave service to the State and who have fallen upon hard times.
This is a short Bill. Nevertheless, I believe it will remove a number of the outstanding grievances which have been expressed on behalf of the Old I.R.A., and I feel that the House will appreciate the position regarding the efforts which are now being made to deal with these claims. Within the next couple of weeks, I hope to introduce an Army Pensions Bill. That Bill will, among other things, provide for certain increases in wound, disability and other pensions and allowances payable under the Army Pensions Acts. It will also extend the date of application for medals, thus rendering a large additional number of persons eligible to qualify for special allowances and will, in addition, effect certain improvements in the rates of special allowances.
The cost of the provisions contained in these two Bills is estimated to amount to about £400,000 a year. Deputies will, I feel sure, agree that this is a generous sum to provide towards the removal of the grievancesso often referred to in this House. It is a substantial amount, which may have to be added to in view of the possible effects of the extension of the date for petitions and new applications under the present Bill, as well as the further proposed extension of the date for medal applications. As the sum which I have mentioned, together with the arrears, will have to be found in the forthcoming financial year, Deputies will, no doubt, agree that the taxpayer, the main source of our revenue, should not be further strained in this regard.