1. This Order may be cited as the Government Annuity Tables Order 1973, and shall come into operation on 10th September 1973.

2. The Interpretation Act 1889 shall apply for the interpretation of this Order as it applies for the interpretation of an Act of Parliament.

3.-(1) Table C.201 set out in Schedule 2 to the Government Annuity Table Order 1968(1) (which shows the purchase price of an annuity when the average price of £100 2½ per cent. Consolidated Stock is less than £30) shall be varied so that it applies only when that average price is £29⅜ or between £29⅜ and £29⅞.

(2) Table C.202 set out in the said Schedule 2 (which shows the purchase price of an annuity when the average price of £100 2½ per cent. Consolidated Stock is £30 or between £30 and £30.25) shall be varied so that it applies when that average price is £29⅞ or between £29⅞ and £30¼.

4. The Tables set out in Schedule 1 to this Order (which show the purchase price of an annuity when the average price of £100 2½ per cent. Consolidated Stock is less than £29⅜ but not less than £19¼) shall be added to the tables set out in-

(a)Schedule 2 to the Savings Bank Annuities (Tables) Order 1954(2),

(b)Schedule 2 to the Savings Bank Annuities (Tables) Order 1955(3),

(c)Schedule 2 to the Government Annuity Table Order 1963(4), and

(d)Schedule 2 to the Government Annuity Table Order 1968.

5. The rules observed in making the variations provided for in article 3 above and in framing the new tables added by article 4 above are set out in Schedule 2 to this Order.

Article 4

SCHEDULE 1

Tables showing the sum for which an immediate life annuity of £1, payable quarterly, could have been bought under Part II of the Government Annuities Act 1929 (c. 29) if the power to grant such annuities had not been terminated by section 33(1) of the Finance Act 1962 (c. 44).

In the tables below "age last birthday" means the age in completed years, at the time of the notional purchase of the annuity, of the person upon whose life the annuity is to depend.

Cost of an immediate life annuity of £1, payable quarterly, when the average price of £100 of 2½ per cent. Consolidated Stock is £20 or between £20 and £20⅞

Cost of an immediate life annuity of £1, payable quarterly, when the average price of £100 of 2½ per cent. Consolidated Stock is £20⅞ or between £20⅞ and £21¾

Cost of an immediate life annuity of £1, payable quarterly, when the average price of £100 of 2½ per cent. Consolidated Stock is £21¾ or between £21¾ and £22¾

Cost of an immediate life annuity of £1, payable quarterly, when the average price of £100 of 2½ per cent. Consolidated Stock is £22¾ or between £22¾ and £23¾

Cost of an immediate life annuity of £1, payable quarterly, when the average price of £100 of 2½ per cent. Consolidated Stock is £23¾ or between £23¾ and £25

Cost of an immediate life annuity of £1, payable quarterly, when the average price of £100 of 2½ per cent. Consolidated Stock is £25 or between £25 and £25⅝

Cost of an immediate life annuity of £1, payable quarterly, when the average price of £100 of 2½ per cent. Consolidated Stock is £25⅝ or between £25⅝ and £26⅜

Cost of an immediate life annuity of £1, payable quarterly, when the average price of £100 of 2½ per cent. Consolidated Stock is £26⅜ or between £26⅜ and £27

Cost of an immediate life annuity of £1, payable quarterly, when the average price of £100 of 2½ per cent. Consolidated Stock is £27 or between £27 and £27¾

Cost of an immediate life annuity of £1, payable quarterly, when the average price of £100 of 2½ per cent. Consolidated Stock is £27¾ or between £27¼ and £28½

Cost of an immediate life annuity of £1, payable quarterly, when the average price of £100 of 2½ per cent. Consolidated Stock is £28½ or between £28½ and £29⅜

Article 5

SCHEDULE 2Rules observed in making the variations specified in article 3 and framing the new tables set out in Schedule 1

Table C.202 set out in Schedule 2 to the Government Annuity Table Order 1968 has been varied so that, instead of applying when the average price of £100 2½ per cent. Consolidated Stock is £30 or between £30 and £30.25, it applies when the average price is £29⅞ or between £29⅞ and £30¼. Table C.201 has been varied so that, instead of applying whenever the average price is under £30, it applies only when the average price is £29⅜ or between £29⅜ and £29⅞, thereby enabling new tables to be added to cover price ranges below £29⅜, all of which were previously covered by Table C.201.

The tables set out in Schedule 1 to this Order are based on an investigation into the mortality of government annuitants which is described in detail in a report by the Government Actuary and the Actuary to the National Debt Commissioners dated 24th May 1954 and published as a Stationery Office publication. The investigation showed not only that the mortality of government annuitants at that time was considerably lighter than that experienced in the period 1900-1920 on which the tables hitherto in use were based but also that the allowance made in those tables for a prospective further decline in mortality was no longer adequate. The same additions to the net annuity values have been made in constructing the new tables as were made when the existing tables were constructed in 1954 and 1955 in order to secure that the grant of annuities under them did not cause any loss to the Exchequer. The new tables incorporate also an addition of £1.80 per cent. of the net annuity value to provide for the expenses which would be incurred by the National Debt Commissioners in connection with the grant and payment of each annuity if the Commissioners were to continue to grant annuities.

EXPLANATORY NOTE

Section 33 of the Finance Act 1962 terminated the power to grant annuities under the Government Annuities Act 1929 except in special cases, but the government annuity tables, which had been used primarily to calculate these annuities, and were also used to determine certain other payments, were kept in force, and the Treasury were given power to vary the tables and add new tables.

This Order varies Tables C.202 and C.201 in Schedule 2 to the Government Annuity Table Order 1968 so that, instead of applying when the average price of £100 2½ per cent. Consolidated Stock is respectively-

(a) less than £30¼ but not less than £30, and

(b) less than £30,

they apply respectively when the average price is-

(i) less than £30¼ but not less than £29⅞, and

(ii) less than £29⅞ but not less than £29⅜.

The Order adds new tables to cover a range of prices below £29⅜ down to £19¼.