HC Deb 16 June 1986 vol 99 cc376-8W
Mr. Stanbrook

asked the Secretary of State for Foreign and Commonwealth Affairs if he will give the figures of the total paid out of the pension fund of the Federation of Central Africa public service each year since the dissolution of the federation, specifying that part devoted to the actual payment of pensions and that part devoted to administration expenses.

Mr. Raison

The figures are as follows:

Pensions and other benefits Z$ '000 Administrative expenses Z$ '000
1964 2,691 5
1965 1,552 11
1966 1,172 14
1967 1,507 13
1968 1,361 23
1969 1,216 23
1970 2,448 51
1971 2,420 75
1972 2,380 52
1973 2,541 47
1974 2,886 55
1975 3,115 69
1976 3,260 96
1977 2,420 105
1978 2,375 121
1979 2,578 126
1980 2,726 127
1981 3,491 165
1982 3,251 234
1983 3,087 217
1984 2,709 244

Notes:

(1) All amounts are Zimbabwe dollars (or Rhodesian pounds wher applicable).

(2) Figures are for the year ending 31 July, expect for 1964 which covers the seven months ending 31 July.

(3) Figures for 1985 are not yet available.

Mr. Stanbrook

asked the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement on progress made with the consolidation of widows and orphans pension funds relating to the Overseas Civil Service and the application of the proceeds from the sale of assets held by the separate funds.

Mr. Raison

Last year the assets of the four Indian family pension funds were realised and the proceeds paid over to the Exchequer in return for the guaranteed payment of all existing and future pensions. Similar arrangements are in preparation for the colonial widows and orphans pension funds for which the British Government have assumed responsibility under the pensions takeover programme. These arrangements will result in significant savings in administrative costs whilst preserving the pensioners' entitlements.

Mr. Stanbrook

asked the Secretary of State for Foreign and Commonwealth Affairs if he will list the territories in the Commonwealth whose pension obligations towards their former expatriate staff have been taken over by the United Kingdom and those for which similar arrangements have not yet been made; and if he will make a statement on progress made in this respect.

Mr. Raison

The Commonwealth countries whose pension obligations towards certain former expatriate staff have been taken over by the United Kingdom are:

Antigua Gambia
Barbados Ghana
Belize Grenada
Botswana Guyana
Cyprus Jamaica
Dominica Kenya
Fiji Kiribati

Lesotho Sierra Leone
Malawi Singapore
Malaysia Solomon Islands
Malta Sri Lanka
Mauritius Swaziland
Nigeria Tanzania
St. Kitts Uganda
St. Lucia Vanuatu
St. Vincent Zambia
Seychelles

Certain pension obligations of the former East African community have also been taken over.

The Commonwealth countries with who similar arrangements have not yet been made are:

  1. (1) Bangladesh: There are roughly 150 eligible pensioners who will be formally taken over when arrangements for the transfer of certain residual Pakistan pensions are complete.
  2. (2) India: Responsibility for the main body of Indian pensions was transferred in 1955; a small residual group of about 200 pensioners remains.
  3. (3) Trinidad: There are approximately 100 eligible pensioners.

We expect to complete arrangements to take over these pensions during the course of this year. Financial settlements consequent upon this takeover programme remain to be concluded with 23 of the countries listed above. We expect this process to be completed within the next two years.

Mr. Stanbrook

asked the Secretary of State for Foreign and Commonwealth Affairs if he will give the actuarial valuation of the central African pension fund at the most recent date available: and if he will make a statement as to the Government's policy towards the fund.

Mr. Raison

The interim actuarial valuation of the central African pension fund as at 31 July 1983 showed the following:

Zimbabwe dollars million
Assets 30.6
Liabilities 27.5
Estimated surplus 3.1

These figures were based on certain assumptions, including exchange rates. A full valuation is in the course of preparation.

The British Government, in common with the three other guarantor Governments — Malawi, Zambia and Zimbabwe—are concerned to ensure that the fund has sufficient resources to enable it to meet its commitments. In particular, the British Government have undertaken to meet 25 per cent. of any deficit revealed by periodic actuarial valuations of the fund. We have contributed some £4 million since 1964 under this arrangement.