§ Mr. Kenneth Clarkeasked the Minister for the Civil Service why the scheme which enables members of Civil Service pension schemes to pay additional voluntary contributions to buy improved benefits enables those benefits to be based on added years of service and final salary so that the contributions may be far less than the actuarial price of the extra benefits acquired; and who pays the shortfall that results to the national pension fund.
§ Mr. Charles R. MorrisThere is no shortfall. The contribution rates have been calculated by the Government Actuary on an actuarial basis consistent with the requirement that the rates should be adequate to meet the whole cost of the extra benefits.
§ Mr. Nicholas Edwardsasked the Minister for the Civil Service if he will publish a detailed list showing which categories of former public sector employees qualify for indexed pension increases under the Pensions Increase Act 1971; and which of the pension schemes are contributory.
§ Mr. Charles R. MorrisThe detailed list of those covered directly by the Pensions594W (Increase) Act 1971 is to be found in Schedules 2–4 to that Act. The major categories are the Civil Service, the National Health Service, local government, teachers and the police and fire services all of which, apart from the Civil Service, have contributory pension schemes. In the case of the Civil Service, in addition to a direct contribution of 1½ per cent, of salary for family benefits, pay rates are adjusted downwards to take into account the contributions which an employee in comparable work outside the Civil Service would pay for equivalent pension benefits.