§ 29. Mr. Pardoeasked the Minister for the Civil Service if his Department has 460W reviewed the working of the Pension (Increase) Act 1971, which guaranteed the pensions of civil servants to be compensated for inflation.
§ Mr. Tim Rentonasked the Minister for the Civil Service whether, in the light of the Chief Secretary to the Treasury's indefinite postponement of the target date for reaching single-figure inflation, he is reviewing the commitment to unlimited inflation-proofing of the Civil Service pension.
§ Mr. Charles R. MorrisUnder the provisions of the Pensions (Increase) Act 1971, as amended by the Superannuation Act 1972, public service pensions are reviewed annually. In the course of each annual review the Government consider whether the existing arrangements are still appropriate.
§ 31. Mr. Stephen Rossasked the Minister for the Civil Service how many other countries in the OECD group have public sector pensions which are not funded; and how many have schemes which have guaranteed protection against inflation.
§ Mr. Charles R. MorrisI regret that this information is not at present available centrally. I am having it collected and will write to the hon. Member in due course.
§ 34. Mr. Beithasked the Minister for the Civil Service what has been the aggregate cost of public service pensions in each year since 1971; and what has been the corresponding percentage increase over each year.
§ Mr. Charles R. MorrisSuperannuation payments made to or in respect of former public service employees—that is, civil servants, teachers, NHS and local government staffs, policemen, firemen and members of the Armed Forces— amounted to £517 million in 1971, £614 million in 1972, £766 million in 1973, £884 million in 1974 and £1,071 million in 1975. These figures include payments to widows, children and other dependants and some non-recurring payments such as lump sums, transfer values and refunds of contributions as well as pensions to the former employees themselves.
Any pensions which began on or before 1st April 1971 were increased from 1st 461W September of that year by varying percentage amounts under the Pensions (Increase) Act 1971 to take account of increases in the cost of living since the previous increase was given in 1969. Subsequent reviews under the provisions of that Act resulted in basic increases of 99 per cent.—in respect of a 15-month period—from 1st December 1972, 9.3 per cent, from 1st December 1973, 16.5 per cent, from 1st December 1974 and 26.1 per cent, from 1st December 1975. The increase from 1st December 1976 is to be 13.8 per cent.
§ 37. Mr. David Steelasked the Minister for the Civil Service what consideration he has given to the recommendations of the Tomlin Commission of 1931 and the Fulton Report in 1966 to 1968 proposing that Civil Service pensions be placed on a contributory basis; and if he will make a statement.
§ Mr. Charles R. MorrisThe decisions not to proceed with the proposals of the Tomlin Commission in 1931 and of the Fulton Committee in 1968 for a contributory system for Civil Service pensions were taken by the Governments of the day on the agreed recommendations of committees representative of the Official and Staff Sides of the National Whitley Council. The present position, as has been explained on a number of occasions, is that civil servants contribute towards their pensions by forgoing pay. To change to a contributory system would therefore involve adding to the salary bill a sum to be deducted as contributions and the setting up of a more complex and costly administrative machine to bring these contributions to account, with a consequent overall increase in public expenditure.