Hansard

Cotton Commission Staff (Compensation Proposals)

Volume 523: debated on Tuesday 16 February 1954

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Sir V. Raikes

asked the President of the Board of Trade whether he is in a position to make a further statement about the proposals for compensating staff of the Raw Cotton Commission who lose their employment as a result of the Government's change of policy for the importation of raw cotton.

Mr. P. Thorneycroft

Yes. My noble Friend the Minister of Materials and I asked the Raw Cotton Commission to reconsider certain points contained in their original compensation proposals. The Commission have now submitted amended proposals. For the convenience of hon. Members, these are set out in full below.

SCHEME OF COMPENSATION FOR THE STAFF OF THE RAW COTTON COMMISSION DISCHARGED AS A RESULT OF THE GOVERNMENT'S ACTION IN CHANGING THE ARRANGEMENTS FOR THE IMPORTATION OF COTTON.

1. The provision will be of two kinds:

  • (a) Gratuity.
  • (b) Additional contributions to pension scheme for staff over the age of 40.

    • 2. Gratuity

  • (a) The persons eligible will be those who:
  • (i) were in the Commission's service on 3rd July, 1952, and cease to be employed by the Commission as a direct result of the Government's action in changing the arrangements for the importation of cotton, and
  • (ii) have at least three years' continuous service by the date of termination of service or hold a permanent established appointment under a formal letter of appointment.
  • (b) The amount to be paid will be a lump sum of two-twelfths of the annual rate of pay at the time of discharge for the first complete year of service with the Commission plus one twenty-fourth of the annual rate of such pay for each additional completed six months' service with the Commission.
  • (c) The gratuity would not be subject to income tax.

    • 3. Additional Contributions to Pension Scheme

  • (a) The persons eligible will be those who:
  • (i) qualify for gratuity under paragraph 2, and
  • (ii) are within the existing pension scheme, and
  • (iii) elect to remain within the pension scheme following their discharge from the Commission's service, and
  • (iv) have served at least one complete year with the Commission since reaching the age of 40 years.
  • (b) Compensation for loss or diminution of pension will be made by payment to the Assurance Society by the Commission of an additional contribution in respect of each member of the staff eligible under paragraph 3 (a) for the purchase of an annuity or endowment policy. The amount of the additional contribution will be the Raw Cotton Commission's contribution in respect of the last six months' period of service multiplied by the number of complete periods of six months' service with the Commission since reaching the age of 40 but not exceeding the number of years to be served by him before reaching 65 years of age (60 for women) or 10 years whichever shall be the less.