§ 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 449W 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.