HC Deb 08 April 1982 vol 21 cc448-9W
Mr. Marlow

asked the Chancellor of the Exchequer, on the current actuarial assumption that £10,000 would buy an index-linked pension of £624 per annum at 60 years and £723 per annum at 65 years, what nominal capital would be required to finance the pensions payable to each of the various grades of the administrative Civil Service; and what would have been the rate of investment as a proportion of their income under existing tax arrangements that would have been necessary to acquire such capital sums through an average life insurance scheme.

Mr. Hayhoe

These assumptions are not considered appropriate by the Government's actuarial advisers for the purpose of assessing the value of an index-linked pension provided by an occupational pension scheme. The Government Actuary estimated in 1980 that, as a proportion of pay, the contribution required during the service of an average administrative civil servant to provide all superannuation benefits, including the index-linked pension, was 16.8 per cent. if invested in a tax-free superannuation fund. I regret that corresponding information for each grade could be provided only at disproportionate cost.

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