HC Deb 09 November 1959 vol 613 cc6-7W
Mr. Hopkins

asked the Minister of Health when he proposes to publish the Report of the Government Actuary on his investigation of the National Health Service Superannuation Scheme for the period ended 31st March, 1955; and if he will make a statement.

Mr. Walker-Smith

The Report is being published by the Stationery Office tomorrow and copies will be placed in the Library of the House.

The Government Actuary found that on 31st March, 1955, there was a deficiency in the Scheme of £79.5 million. Of this, £34 million was an initial deficiency attributable to decisions at the inception of the Scheme to give recognition to the existing rights and expectations of those transferred to the National Health Service when it was set up, and to the entry into the Scheme at that time of persons at ages above the normal ages of entry to the Health Service. The contributing factors are set out in more detail in paragraph 36 of the Report. About £40 million is attributable to rises in wages and salaries since 1948.

It is proposed that the deficiency should be dealt with as follows. The superannuation account will be credited with £34 million, representing the "initial deficiency". An accounting adjustment will be made retrospectively from 1948 in order to meet the whole of the deficiency of £4.1 million arising from payments in respect of practitioners who maintain individual policies. Employees' contributions will not be increased, but in future interest will not be paid on contributions returned to employees who voluntarily leave the Health Service before becoming entitled to any superannuation benefit. It is estimated that this will produce a saving of about £0.9 million. The balance of the deficiency, namely, £40.5 million, will be liquidated over a period of approximately twenty years by adding to the present employer's contribution a special supplement of 1½ per cent. of salary.

The staff interests concerned are being informed and their observations invited prior to the laying of the necessary draft Regulations before Parliament.