§ Mr. Shersbyasked the Minister for the Civil Service what is the current increase in index-linked pensions payable to civil servants and others; and what is the maximum escalator permitted by the Inland Revenue in respect of individual occupational pension policies.
§ Mr. ChannonUnder revised arrangements introduced this year most public 319W service pensions will be increased by 16 per cent. from 12 November 1979. I am told that Inland Revenue practice allows for the escalation of pension paid from occupational pension schemes by reference to increases in the retail price index and that the Revenue does not impose any limit on the escalation of pensions under individual pension policies—retirement annuity contracts—taken out by the self-employed or those in non-pensionable employment.