CONFIDENTIAL
2ND DRAFT
21.
PAY AND PENSIONS
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, designed to take account 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% to 971% of the rate for men,
Other improvements include a new form of additional pay for Servicemen
in Northern Ireland.
22. The second phase of the review of the Armed Forces Pension Scheme
resulted in the introduction, on 1 April 1973, of substantial improve-
ments in benefits in cases of invaliding or death (including widows'
pensions), especially when attributable to duty. The third stage
of the Pensions review (still in progress) is concerned primarily
with the preservation of pension rights for personnel who do not
serve long enough to qualify for an immediate award. Its aim is to
bring the Armed Forces Pension arrangements into line with the
preservation requirements of the Social Security Act 1973.
CONDITIONS OF SERVICE
Housing for Servicemen and their Families
23. Some Servicemen experience problems in obtaining suitable
housing on leaving the Services. Proposals are being considered
to alleviate such difficulties, including a review, in consultation
with the Department of the Environment, of the advice given to local
authorities on the provision of council housing for ex-Servicemen. 7
Pay Review Board recommendation on house-purchasing scheme 7.
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CONFIDENTIAL
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