§ Mr. Ioan Evansasked the Minister for the Civil Service if, further to his reply to the hon. Member for Norfolk, South (Mr. MacGregor)—[Official Report, 28th February, c. 19–21]—he will make a statement about the contributions, both direct and indirect, that civil servants make toward the cost of their pensions.
§ Mr. Charles R. MorrisCivil servants pay for their pension in three ways. First, directly, in the case of male civil servants, through a 1½ per cent. contribution for family benefits. Second, indirectly, as part of the pay research process, through the reduction made to the outside rates on which civil servants' pay is based to take account of outside employees' contributions. The full amount of thesecontributions—typically some 5 per cent. or 6 per cent.—is deducted except only where the contribution also covers family benefits, in which even they are adjusted for the 1½ per cent. paid by civil servants. Third, indirectly, again as part of the pay research process, through the further reduction made to pay research rates to allow for differences in pensions benefits. This deduction was last set at 1¾ per cent. on the basis of the 1973 review by the Government Actuary and will be reviewed again on the restoration of pay research. This means that in addition to the contribution paid out of salary for family benefits, deductions are built into Civil Service pay rates through pay research corresponding to outside employees' contributions and allowing for any superior benefits available through the Civil Service scheme.
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