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Clause 8—(Return Of Periodical Contributions Under Part I)

Volume 465: debated on Tuesday 31 May 1949

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I beg to move, in page 7, line 21, to leave out from "years." to "and," in line 25.

This Amendment and the corresponding Amendment to Clause 21 prepare the way for the new paragraph 1 which it is proposed to move, and which I hope will be inserted, in the Second Schedule. The object of these Amendments is to make a minor adjustment in the machinery for the payment of contributions. A civil servant may make contributions either by deductions from his salary year by year, or by an abatement of the lump sum which he receives on retirement, or, if he dies whilst still serving, from the lump sum paid to his estate. Civil servants may complete 40 years' reckonable service before age 60, or at that age or later. Both categories, if they have elected to pay by deduction from salary, continue to do so until they retire; but the first category—those who complete 40 years' reckonable service before the age of 60—unlike the second, will under the Clause as it stands have these deductions returned to them, not only in so far as they have been paid in respect of their period of service between the completion of 40 years' reckonable service and age 60, but also in so far as they have been paid in respect of any service rendered after the age of 60. If, therefore, they are to continue to serve after the age of 60, their contributions in respect of this period of their service will have to be settled by abatement of the lump sum.

Representations have been made to the Treasury by the National Staff Side that this distinction is unreasonable and unnecessary. It is agreed, therefore, that the Amendment should be put down; it puts both categories in exactly the same position.

Amendment agreed to.