§ 62. Mr. John Morrisonasked the Financial Secretary to the Treasury the average annual pension paid to each grade of civil servant; is the actual deduction from salary or nominal proportion of salary regarded as contributed towards the pension; and what capital amount invested in Government securities this annual income represents.,
§ Mr. Glenvil HallAs the answer is somewhat long, I will, with permission, circulate it in the OFFICIAL REPORT.
§ Following is the answer:
§ The information asked for in the first part of the Question is not available. The normal Civil Service pension is 1/80th of salary averaged over the last three years of service, for each year of pensionable service, subject to a maximum of 40/80ths. There is also a lump sum additional allowance, payable on retirement, of three times the annual pension. The pensions scheme is non-contributory, but, to build up a fund to provide benefits of the order described, it would be necessary to set aside annually a sum equal to about 18 per cent. of the salaries of established civil servants to accumulate at 2½ per cent. compound interest. At present, the annual cost of these pensions, exclusive of lump payments, is about £13¾ million. A capital sum of £550 million invested, in Government securities, at 2½ per cent. would produce an equivalent income.