“Section 109 of the Local Government Law lays down that “the Governor in Council may by regulation make provision with respect to the pensions and gratuities which are to be paid whether as of right or otherwise- (a) … (b) to other persons who have been employees of a council or councils.” The regulations made under this authority are the Local Government Staff (Retirement Benefits) Regulations, and Regulation 32, on which the Council relies, provides that “nothing in these regulations shall be construed as conferring a right to a pension or to a gratuity or to an ex gratia allowance as compensation for past service.” The question arises whether ‘a right to a pension’ means “a right to be granted a pension” or “a right to receive a pension once it has been granted.” In our view, the context shows that the phrase bears the first meaning. Regulation 7 lays down that a council official may, in stated circumstances, be granted a pension; Regulations 13, 15, 17 and 22 lay down when and to whom gratuities may be granted; Regulation 29 lays down that Councils may grant ex gratia allowances. Regulation 32 seems intended to make it clear that these provisions are permissive and not obligatory as a matter of law. As regards the payment of a pension once granted, Regulation 12 empowers a council to direct that a pension shall cease on the conviction of an ex-official, but the proviso to the regulation makes it obligatory to restore the pension with retrospective effect if the ex-official receives a free pardon. It is significant that the grant of a pension requires the approval of the Permanent Secretary to the Ministry of Local Government, whereas Regulation 12 contains the only provision for the discontinuance of a pension. It would be inconsistent with the general pattern of ministerial control if a council could withhold a pension at its own pleasure after the grant had been approved.”
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