To ask the Secretary of State for Defence how many pensions have been in payment to (a) officers retiring after 16 years and (b) others ranks retiring after 16 years in each year since 1990-91; and if he will make a statement. (101142)

The information requested is not held centrally and could provided only at disproportionate cost.

To ask the Secretary of State for Defence what proportion of defence spending was on defence pensions in each year since 1980-81; and what he estimates it will be in each of the next five years. (101299)

Each year, in its Annual Report and Accounts, the Department provides a figure for the aggregate pension costs incurred in respect of its civilian and Service employees. This has been used to calculate the proportion of defence spending on defence pensions, by reference to the net resource outturn for the financial years 2000-01 to 2005-06 (and an estimate for 2006-07), as follows:

Prior to the production of departmental resource accounts, information on salary and pension costs was provided in the appropriation accounts, but the figures relating to civilian pensions were included as part of overall personnel costs and were not separately identifiable. Information for the financial years 1980-81 to 1999-2000 could, therefore, be provided only at disproportionate cost.

The Department is currently in the process of determining resource allocation priorities and setting budgets for the next financial year; this process will conclude in the first quarter of 2007. In addition, a formal Defence budget for financial years 2008-09 to 2010-11 will not be set until the conclusion of the Comprehensive Spending Review in summer 2007. It is, therefore, not possible at this stage to provide accurate estimates for the potential costs over the next five years of the Department's contribution to the military and civilian pension liability as a proportion of overall defence spending.

To ask the Secretary of State for Defence why officers who complete 16 years service are entitled to an immediately payable pension; and what average amount such a person is paid. (101382)

Under the rules of the Armed Forces Pension Scheme 75 (AFPS 75) officers who complete 16 years reckonable service from age 21 receive an immediate pension (IP) based on the representative rate of pay for their rank.

The IP point was set at 16 years to meet the needs of the armed forces in terms of its manpower profile. Service beyond this point will normally be subject to the individual's potential. Typically, officers leaving at the IP will be in the rank of Lieutenant Commander, Major or Squadron Leader, and will be awarded a pension of £12,942 per annum and a pension lump sum of £38,826.

Under AFPS 75, members of the armed forces with the same rank and same number of years’ service are normally awarded the same pension, regardless of their actual pay either at retirement or discharge, or earlier in their career. This is known as the representative pay rate. Representative pay is worked out using specially selected rates of military salary.

The Armed Forces Pension Scheme 2005, which was introduced in April 2005 under the provision of the Armed Forces (Pensions and Compensation) Act 2004, does not feature an IP. Instead, officers who serve for at least 18 years and are aged at least 40 (the Early Departure Payment Point) will receive payments under the Early Departure Payments Scheme Order 2005. The aim of these payments is to encourage personnel to serve until the Early Departure Payment Point and to compensate them for the fact that the armed forces cannot offer the majority a career until age 55.