Pensions (Deferred Pay)

Oral Answers to Questions — Government Departments – in the House of Commons on 20th April 1944.

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Photo of Captain Leonard Plugge Captain Leonard Plugge , Rochester Chatham

asked the Chancellor of the Exchequer what would be the financial result of treating civil servants' pensions as deferred pay in fixing the amount of salaries.

Photo of Sir John Anderson Sir John Anderson , Combined Scottish Universities

A system of deferred pay would presumably involve definite and ascertainable deferments of pay throughout service, with payments on termination of service restricted in individual cases to the produce of the individual's accumulated deferments of pay, plus some fixed contribution by the State as employer. In effect, this would mean a contributory pensions scheme. The financial result of any such scheme would clearly depend upon its exact nature and scope and, in the absence of information on that point, I am unable to provide any estimate of cost.