§ Mr. Stanleyasked the Minister for the Civil Service if he will list the categories of public sector employees who are entitled to a tax-free lump-sum payment in addition to their pension on retirement, the approximate number of employees currently in each category and the formula used for each category for calculating the lump-sum payment.
§ Mr. Charles R. MorrisAmong the major categories of public sector employees who have pension schemes within my area of responsibility which include lump sum payments as an integral part of their superannuation entitlement are employees in the Civil Service, the National Health Service, local government, teaching and the Armed Forces. In these cases, except for the Armed Forces, the lump sum is three-eightieths of pensionable salary for each year of reckon-able service.
Employees in the police and fire services are the two remaining major categories. In their case a tax free lump sum is available by commutation from a higher basic pension, as is frequently the case in the private sector.
I regret that detailed figures for all these categories are not readily available. 801W I will write to the hon. Member as soon as they have been compiled.
§ Mr. Stanleyasked the Minister for the Civil Service if he will list the categories of public sector employees who have a contractual entitlement to an inflation-proofed pension and the approximate number of employees currently in each category.
§ Mr. Charles R. MorrisFor the majority of those public servants who have pension schemes within my area of responsibility there is no contractual entitlement as such to an inflation-proofed pension since the basic pension and any cost of living increases derive from primary legislation. For the most part the Superannuation Act 1972 applies for basic pensions and the Pensions (Increase) Act 1971 for increases. Details of these categories of employees are given below:
- Civil servants
- National Health Service staff
- Local Authority staff
- Policemen
- Firemen
- Teachers
- Members of the Armed Forces
- Members of the Judiciary
- Members of Parliament
Details of the number of employees in these categories are being obtained and I will write to the hon. Member as soon as the list has been compiled.
It would entail disproportionate cost to obtain corresponding information from the large number of small bodies in the public sector with pension schemes for which I have a co-ordinating responsibility.