Vol. 48 No. 9
I move:—
That the Defence Forces (Pensions) (Amendment) (No. 2) Scheme, 1957, prepared by the Minister for Defence, with the consent of the Minister for Finance, under Sections 2, 3 and 5 of the Defence Forces (Pensions) Act, 1932, and Section 4 of the Defence Forces (Pensions) (Amendment) Act, 1938, and laid before the House on the 8th day of October, 1957, be confirmed.
This pensions scheme arises from alterations which have been made in the Defence Force Regulations governing retiring ages for certain officers who, having been granted the 1916 Medal or the Service (1917-1921) Medal, or both of those medals, were eligible to have applied to them retiring ages which were higher than those normally applicable. I should perhaps explain that at present the normal ages prescribed by Defence Force Regulations for the retirement of officers with the 1916 Medal or the Service (1917-1921) Medal are one year higher than the normal retiring ages for officers without those medals. Furthermore, up to recently an additional extension of two years could have been granted to an officer with either of the medals subject to certain requirements as to health and efficiency and to my being satisfied that it was in the best interests of the service if he continued to serve beyond the normal age for his retirement. All such extensions were, of course, subject to the overriding maximum of 65 years of age.
These extended age limits were brought into force in July, 1949, in so far as the additional year is concerned and in November, 1954, in so far as the extra two years are concerned.
I do not think I am called upon to go into the reasons which actuated the Governments then in power in granting these benefits to the officers concerned. I am satisfied, however, that the two year extension granted in 1954 did not redound to the general well-being of the Army in that it created a serious sense of injustice in the officers in the junior ranks who had not the medals and whose normal prospects of advancement were suddenly seriously impaired. The position was aggravated, of course, by the fact that the great majority of the officers benefiting were senior officers. In the circumstances I have taken steps to have the authority for granting the additional two year extension withdrawn in the case of officers retiring on or after 1st November, 1957. The necessary amendment to Defence Force Regulations has been promulgated. Officers who are already serving on a two year extension are not affected by the amendment to the regulations mentioned and they may, if they wish, continue to serve until they reach the extended age limits already approved in their cases.
I recognise that those officers who up to this have acted on the assumption that they would have the benefit of a retiring age limit extended by two years may feel aggrieved by this amendment to the regulations. I am fully satisfied, however, that the general well-being and morale of the Army as a whole demand that this two year extension of age limits should be withdrawn. In order, however, to ensure that the remedying of one grievance will not create another, the Government have authorised me to prepare this pensions scheme which provides that the officers concerned will on retirement be paid supplementary retired pay which, when added to their normal retired pay, will bring their income by way of retired pay and supplementary retired pay up to the amount of the Army pay which would be payable to them if they had continued to serve for a further period of two years in the same ranks as they held at the dates of their retirement. This scheme, therefore, maintains for the officers concerned the financial benefits of a further two years' Army service. The supplementary retired pay will cease when the officer reaches either the extended age limit which would have been applicable to him if the Defence Forces Regulations had not been amended or the age of 65 years, whichever is the earlier. Provision to the foregoing effect is contained in Article 5 of the scheme which article also provides in effect that an officer in the category concerned who is already serving subject to an age limit extended by two years and who retires voluntarily before he reaches such extended age limit, will likewise be eligible for supplementary retired pay from the date of his retirement and up to the date on which he would reach either the extended age limit or the age of 65 whichever is the earlier.
Article 6 makes provision for a case where an officer to whom the scheme applies qualifies for a disablement pension on retirement. In such an event, the supplementary retired pay would be reduced to such amount as would keep the total payable by way of retired pay, supplementary retired pay and disablement pension to the equivalent of his Army pay.
Article 7 applies to supplementary retired pay certain general provisions of the pensions schemes which at present apply to normal retired pay. There is nothing new involved and I do not think it necessary to deal in detail with these.
As to the numbers of officers affected by these proposals, at present there are 64 officers serving whose dates of retirement, without the extension of two years, fall after 1st November, 1957. These officers, therefore, cannot be granted the two years extension of retiring age but they will instead qualify for the grant of supplementary retired pay for two years after retirement.
There are a further 25 officers who were granted the extension of two years and whose extended dates of retirement fall after 1st November, 1957. It is open to them, as I have mentioned, to continue to serve until they reach the extended retiring age. Where, however, they choose to retire before that time, they will be eligible for the grant of supplementary retired pay as from the date of retirement and up to the date on which they would otherwise have retired on age grounds.
With regard to the cost of this scheme, it is estimated, having regard to the indications as to their intentions given by the 25 officers I have just referred to, that the amount of supplementary retired pay which will become payable up to 31st March next will be £4,000. Normal retired pay which will be payable concurrently will amount to approximately the same figure bringing the total payable under both heads to £8,000. This additional expenditure will be borne on the Vote for Army Pensions but there will be a saving on the Vote for Defence of roughly an equal amount for the same period. Of course, there will also fall on the Vote for Army Pensions the amounts payable on foot of married officers' gratuities ordinarily payable on retirement and these it is estimated will amount to £18,000.
I do not think there is anything more which can usefully be said on the scheme which I commend to the House.
