CONFIDENTIAL
3RD DRAFT
Service
1 April-31 December
(9 months)
1973
(Percentage)
1974*
(Percentage)
Royal Navy
35
28
Royal Marines
24
23
Army
38
40
Royal Air Force
13
15
All Services:
33
33
* Estimate
PAY AND PENSIONS
22. In their Third Report (1974), the Armed Forces Pay Review
Body recommended further increases in military salaries, including
an increased rate of the 'X' factor, to take account for the first
time of unsocial hours. The recommendations were implemented with
effect from 1 April 1974. The basic pay of Servicewomen, exclusive
of the 'X' factor, was increased from 95 per cent to 97 per cent
of the rate for men. Other improvements include a new form of
additional pay for Servicemen in Northern Ireland.
23. The second phase of the review of the Armed Forces Pension
Scheme resulted in the introduction, on 1 April 1973, of substantial
improvements in benefits (including widows' pensions), in cases
of invaliding or death, especially when these are attributable to
duty. The third stage of the Pensions Review has now been com-
pleted and the resulting changes will take effect from 1 April 1975.
The main effect is to preserve pension rights for those who will
serve for at least the specified minimum period of five years
V-9
CONFIDENTIAL