PENSIONS OF RETIRED STATE SERVANTS. Memorandum by the Chancellor of the Exchequer.

from Pensions (Increase) Acts would be regarded as potentially eligible under the new proposals, and any increases granted to them under the earlier Acts would be added to their original basic pension for the purpose of determing the rate of increase to be granted under the new proposals. The increases, as under the 1924 Pensions (Increase) Acts would be made mandatory on the local authorities and other pension paying authorities apart from the State itself. The Treasury do not consider that it would be possible to limit a scheme of this kind to those actually in receipt of pension at the date of the passing of any new Act, and they contemplate that the scheme will have to apply to new pensioners, subject to certain detailed safeguards to avoid double benefit and to a limitation on the period over which the proposed benefits will apply in order to enable the Government to review the situation from time to time, for example in the light of any alterations in the pension schemes here in question which may be required as the result of the Government's proposals on the Beveridge scheme.