Question to the Ministry of Defence:

To ask the Secretary of State for Defence, if he will bring forward legislative proposals to amend the Social Security Act 1973 to ensure pensioners who served in the armed forces prior to 6 April 1975 but did not meet the qualifying service threshold receive a pension.

Although the Ministry of Defence is unable to comment on possible changes to the Social Security Act 1973 as this legislation was introduced by the Department of Social Security, now the Department for Work and Pensions, I am leading work across Government and with civil society to look at the best ways to ensure all Veterans get access to the support and opportunities they need and deserve. This year, we will set out our plans for Veterans in our updated Veterans’ Strategy. This Government will always stand up for those who have served our country.

Prior to 1975, there were no rights to preserved pensions in any public or private pension schemes. For instance, to qualify for a pension under the Civil Service arrangements, an individual had to be over age 50 and have served for ten or more years. Those who left voluntarily before meeting these criteria lost rights to pensions. For the Armed Forces, occupational pensions were awarded only if a member had completed at least 16 years reckonable service as an Officer or 22 years reckonable service as an Other Rank. Reckonable service is paid service after age 21 for officers or after age 18 for Other Ranks.

Engagements for shorter periods were on non-pensionable terms. Gratuities (lump-sum payments) were awarded to those who did not serve long enough for a pension but had completed at least nine years reckonable service as an Officer or 12 years reckonable service as an Other Rank. Gratuities were not paid to compensate for lack of pension but rather to assist the individual to settle into civilian life.

The Social Security Act 1973 brought about changes by requiring all occupational pension schemes to preserve pension rights for those who left service after 6 April 1975 having completed at least five years qualifying service and having attained the age of 26 (later Social Security Acts reduced the qualifying period from five years to two years and removed the age qualification requirement). These changes were not made retrospective.

The legacy issues of the Armed Forces Pension Scheme 1975 are replicated in other public sector schemes in existence prior to the Social Security Act 1973. Where legacy issues are common across public sector schemes, a retrospective change implemented for the Armed Forces would certainly result in pressure from others for similar treatment. To concede retrospection for one group would place great pressure on other public service schemes. Further, if retrospection were to be accepted, future meaningful improvements to pension schemes for current employees would be unaffordable. It is a principle of public service pensions policy, and one that has been upheld by successive Governments, that improvements to pension schemes are not made retrospective.