§ Mr. Grimond
asked the Minister for the Civil Service (1) what proportion of his pension and terminal grant a civil servant forfeits on taking a job after retirement from the service;
(2) what are the present retiral pensions of the first three grades of the Civil Service; and what contributions they make towards the pension;
(3) what grades in the service get terminal grants; what is the present amount of such grants; and whether they are subject to taxation.
§ Mr. Charles R. Morris
All grades of civil servants who retire at or after the retiring age with five or more years of reckonable service receive pensions of 1/80th of pensionable pay multiplied by length of reckonable service, and lump sum equal to three times the annual rate of pension. Pensionable pay for this purpose is the pay and other pensionable emoluments in whichever of the last three years of service gives the highest figure and reckonable service is limited to 40 years at the retiring age or 45 years in total. The scheme is non-contributory, except in respect of widows', widowers' and other dependants' pensions, and this is taken into account in settling Civil Service rates of pay. The lump sum is not taxable, but may be reduced to take account of contributions due but not paid during service for widows', etc., pensions.340W
A Civil Service pensioner re-employed either within or outside the Civil Service does not forfeit his pension and lump sum. Payment of the pension may be suspended in whole or in part in the event of reemployment in the Civil Service, depending on the level of salary payable when the re-employment starts.
Full details of these and other provisions of the Civil Service superannuation arrangements are contained in the Principal Civil Service Pension Scheme, which was laid before Parliament on 19th November 1974.