Page 49 - Group Insurance and Retirement Benefit IC 83 E- Book

(g) Public boards

Arising from the recent nationalization programme, sundry public boards have been

established. In general, existing schemes (very diverse in scope and character) of the
transferred bodies and organizations are being continued as ' closed ' schemes, by reason

of the impracticability of a satisfactory unification ; and the position is further
complicated since each nationalization Act provides that there shall be no worsening in

the pension position of any person transferred under the Act. Schemes approved for new

entrants to the public boards adhere to the general pension and lump sum pattern.
Regulations which are in course of issue under the Superannuation (Miscellaneous

Provisions) Act, 1948, will preserve pension rights on transfer between public boards and
other branches of the public service ; but, as with the National Health Service, such

preservation is dependent on the passage of a transfer value, which is conditional upon
there being no disqualifying break, upon the repayment of any contributions returned by

the former employer, and also upon the consent of such former employer.

Bodies such as the Port of London Authority and the Metropolitan Water Board have, of
course, had their own private schemes for a considerable number of years, but as yet have

not been brought within the scope of interchange rules.

(A) Modifications by reason of State Insurance benefits

(i) Prior to 1946, insured persons qualified for an old age pension at the rate of 10s. a
week, under the Widows', Orphans' and Old Age Contributory Pensions Act, 1936. The

Local Government Superannuation Act, 1937, contained power (now repealed) for an
authority to make a scheme, of voluntary application, whereby, to avoid overlap of

benefits from public moneys, an initial amount of remuneration could be disregarded for

purposes of contribution and of benefit. This power was not widely used.

(ii) Under the National Insurance Act, 1946, a retirement pension of 26s. A week
becomes payable under prescribed conditions. Various regulations have been issued to

avoid overlap of benefits. These provide for the reduction, from the appropriate age, of
the normal annual superannuation allowance by an amount at the rate of £1. 14s. 0d. for

each year of pensionable service, with a corresponding reduction in the contribution