Pensions Commutation Act 1871

JurisdictionUK Non-devolved


Pensions Commutation Act, 1871

(34 & 35 Vict.) CHAP. 36.

An Act to extend the provisions of the Pension Commutation Acts, 1869 and 1870, to certain Public Civil Officers, and to consolidate and amend the said Acts.

[29th June 1871]

Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:

S-1 Short title.

1 Short title.

1. This Act may be cited for all purposes as ‘ThePensions Commutation Act, 1871.’

S-2 Definition of terms.

2 Definition of terms.

2. In this Act—

The term ‘the Treasury’ means the Commissioners of Her Majesty's Treasury for the time being, or any two or more of them:

The term ‘pension’ includes any half-pay, compensation allowance, superannuation or retirement allowance, or other payment of the like nature:

The term ‘officer’ means commissiomed officer and warrant officer in the Army and Navy, and subordinate officer in the Navy:

The term ‘public civil office’ means any office other than that of an officer in Her Majesty's naval or land forces, the holder of which is paid his remuneration out of moneys provided by Parliament for supply services.

S-3 Application of Act.

3 Application of Act.

3. This Act shall apply only—

(1) (1.) To officers in Her Majesty's naval or land forces; and

(2) (2.) To persons who have retired or have been removed from public civil offices in consequence of the abolition of their offices, or for the purpose of facilitating improvements in the organization of the departments to which they belonged, and to whom annual pensions have been granted by way of compensation for such retirement or removal.

S-4 Power to Treasury to commute pensions.

4 Power to Treasury to commute pensions.

4. It shall be lawful for the Treasury, in accordance with such regulations as they may from time to time make, on the application of any person to whom this Act applies, to commute his pension by the payment of a capital sum of money, calculated according to the estimated duration of the life of the pension-holder, subject to the following provisions:

(1) (1.) In calculating the amount payable in respect of the commutation of any pension, the following rules shall be observed:

(a .) The age of the pension-holder shall be reckoned at the age he will attain on the birthday next succeeding his application for commutation;

(b .) In the case of impaired lives, years shall be added to the age of the pension-holder for the purpose of calculating the amount of commutation payable to him; and in like manner a deduction from age shall be made as an equivalent for the right to prospective increase of the pension to be commuted;

(c .) In calculating the amount payable in respect of any pension, interest shall be reckoned at a rate of not less than five pounds per centum per annum:

(2) (2.) Where any officer in the naval or land forces of Her Majesty whose pension has been commuted under this Act subsequently marries, his widow shall not be entitled to any pension, and a child of any such officer born after the date of the commutation of his pension shall not be entitled to compassionate allowance:

(3) (3.) Save as aforesaid, nothing in this Act contained shall be held to deprive the wife or children of any officer whose pension may be commuted of any reversionary right to pension or compassionate allowance to which she or they may be entitled:

(4) (4.) No application for the commutation of a pension shall be received unless it be accompanied, in the case of an officer who has belonged to Her Majesty's naval forces, by a recommendation from the Admiralty, and in the case of an officer who has belonged to Her Majesty's land forces, by a recommendation from the War Office, and in the case of any other person, by a recommendation from the head of the department to which the applicant belongs, unless the Treasury otherwise direct.

S-5 Commutation board constituted.

5 Commutation board constituted.

5. There shall be constituted for the purpose of advising on the cases of applicants for commutation of pensions under this Act a board, in this Act called ‘the commutation board.’

The commutation board shall consist of the Comptroller-General for the time being of the National Debt Office, and of four other persons to be from time to time appointed by the Treasury.

The Treasury may from time to time appoint, and remove, an actuary, medical referees, and such other officers or servants as they may consider necessary, and may pay them such remuneration as they may think fit.

The commutation board shall inquire into and report to the Treasury upon the cases of applicants for...

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