peusion, the new rates were to be applied, in calculating the sterling amount to be paid him to prevent him getting a larger amount of half pay or pension than he would have got. The increase, Lord Knutsford's directions left untouched the "holders of offices" to which no increase of pay, or a less increase than 14% was given, and he made it evident that there was no intention to reduce the half pay or pension of any, then in the Service, or of any office, but to keep pay and pensions at or about their former level, and he worked out a calculation to show that the proposed new rates of exchange would, with the increased salaries, effect no reduction in half pay or pension, but would, if anything, give a slight increase.
The holder, therefore, for the time being, of any office "the emoluments of which had not been increased beyond the 14% limit, would, when going on leave or retiring on pension, get the same proportion of the pay of his office and the same amount on dollars as before, and as that would give him no increase of half pay or pension, it was to be converted at the old rate 4/7/2. To apply the new rates to his half pay or pension would be to reduce his half pay or pension below its former amount.
The new rates of exchange were therefore only applicable where an officer, at the time of applying for half pay or pension, was in receipt of an enhanced rate of pay, on which, if half pay or pension had been calculated according to the ordinary rule, he would, contrary to the intention of the Secretary of State, get increased half pay or pension.