Pensions before 1975... Ministerial confession

Discussion in 'Current Affairs' started by Always_a_Civvy, Jun 14, 2007.

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  1. I have just found an interesting answer in Hansard regarding the issue of the cost of backdating armed forces preserved pensions before 1975. The Minister has conceeded that the Government have no idea of the actual cost and have relied on speculation to make their estimate of the cost possibly being billions of Pounds. The Minister was then asked what would be the cost of ascertaining what the actual cost would be. The Minister has asserted that it would be in excess of £900k.

    Armed Forces: Pensions

    Mr. Waterson: To ask the Secretary of State for Defence what estimate he has made of the cost of (a) awarding retrospectively armed service pensions to all those armed service personnel who do not receive pensions and (b) providing pensions on retirement to those service personnel who are currently not likely to be entitled to a pension.

    Derek Twigg: No specific estimate has been produced regarding the cost of backdating armed forces preserved pensions before 1975. However, in view of the fact that this issue is common to other public service schemes not just the armed forces, the cost, whether to the armed forces or more widely, would be considerable and could run into billions of pounds.

    The only individuals currently serving who will not be entitled to a pension are those who do not serve the two years necessary to qualify for an armed forces pension. However, they may transfer their notional benefits out of the armed forces pension scheme into another public sector scheme.

    Mr. Waterson: To ask the Secretary of State for Defence pursuant to the answer of 23 May 2007, Official Report, column 1289W, on the armed forces: pensions, how much it would cost to obtain the information.

    Derek Twigg: There are currently in excess of 350,000 pensions in payment and, although the sums being paid can be accessed, it is not possible to tell whether the amount is in respect of a “full career pension†or a lesser period. The cost of scrutinising each file to check the length of each individual's reckonable service would be in excess of £900,000.

    source: HC Hansard: 12 June 2007, Col.935W.
  2. In the last paragraph the Minister states that it would cost in the region of £900k (less than £1m) to determine the length of reckonable service for each members of HM Forces, but as you will see from my LINK HERE, the government spent (revealed in a new NAO Report) £2.8Bn on private consultatnts' fees in the Financial Year 2005-06!

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