§ Mr. Arthur Lewis
asked the Secretary of State for Trade why the Government have refused to sanction the Sun Alliance new wage agreement on the grounds, in part, that it is introducing a non-contributory pension scheme; and how this is contrary to the Government's 10 per cent. guideline, in view of the non-contributory pension schemes for the Civil Service.
§ Mr. Dell
Sun Alliance's recent pay agreement provides for a total increase in earnings of 13 per cent., 3 per cent. of which represents a waiver of contributions to a pension scheme. It is this change from a contributory to a non-contributory scheme that, in the Government's view, takes the settlement beyond the pay guidelines. The Government have no objection to non-contributory pension schemes as such, many of which have existed for years in both the public and private sectors.