I move amendment No. 5:—
Before Section 5 to insert a new section as follows:—
(1) The reference to discharge contained in sub-section (1) of Section 4 of the Act of 1924 and the same reference contained in sub-section (3) of that section shall each be construed as not including a reference to discharge for the purpose of being appointed to commissioned rank.
(2) Where a person was, before the passing of this Act, granted under Section 4 of the Act of 1924 a pension under that Act commencing as from the day of his discharge for the purpose of being appointed to commissioned rank, the pension shall stand revoked as from the day from which it became payable.
(3) Where—
(a) a pension granted under Section 4 of the Act of 1924 to a person stands revoked by virtueof sub-section (2) of this section, and
(b) such person is granted after the passing of this Act under Section 4 of the Act of 1924 a new pension under that Act commencing as from a day before the passing of this Act,
the following provisions shall have effect:—
(i) if the aggregate of the payments made in respect of the revoked pension exceeds the aggregate of the arrears of the new pension, the arrears shall not be paid and the excess shall be recovered by non-payment of the new pension to an extent equivalent to the excess,
(ii) if the aggregate of the payments made in respect of the revoked pension equals the aggregate of the arrears of the new pension, the arrears shall not be paid,
(iii) if the aggregate of the payments made in respect of the revoked pension is less than the aggregate of the arrears of the new pension, so much only of the arrears shall be paid as is equal to the amount by which the aggregate of the payments made in respect of the revoked pension is less than the aggregate of the arrears of the new pension.
This amendment arises from certain cases, referred to by Deputy Cowan in the course of the Second Reading debate, in which non-commissioned officers were notionally discharged, without any break in service, for the purpose of being appointed to commissioned rank. On a legal interpretation, they were held to be entitled to military service pensions based on their non-commissioned ranks and were paid such pensions on that basis while serving as officers. They have all now retired but continue to receive their pensions at the non-commissioned rate. I am satisfied that it can never have been the intention that a notional discharge of the nature I have mentionedshould be covered by Section 4 of the Act of 1924, and by this amendment I propose that the persons concerned should have their previous awards revoked and be awarded fresh pensions, commencing in each case from the date of retirement as an officer and based on the commissioned rank held on retirement. The amendment provides for the necessary financial adjustments as between the two pensions. In effect, the amounts paid on foot of the revoked pensions, including the amounts paid during service as officers, will be recovered to such extent as they are not met by the arrears of the new increased pensions based on commissioned rank.