§ Mr. CarringtonTo ask the Secretary of State for Health whether there have been any recent changes to pension arrangements for national health service staff.
§ Mr. DorrellNew arrangements for the payment of additional voluntary contributions (AVCs) are being introduced into the national health service (England and Wales) pension scheme from 1 February 1991. The new facility will give members of the scheme more choice about the way in which extra pension benefits, within Inland Revenue limits, can be provided. Those who wish to pay additional pension contributions will now be able to contribute towards a money-purchase AVC arrangement with the Equitable Life Assurance Society. They will be able to choose the type of additional cover they want to buy and the method of investment. AVCs may be used to increase the member's own pension, dependants' pensions or the lump sum payable on death. The member can choose to invest contributions in a with-profits or a unit-linked investment or, by a link with the Woolwich building society, in a deposit account.
The new scheme will run alongside existing AVC facilities in the NHS pension scheme. The additional choice which staff will now have accords with the Government's continuing commitment to improving the choice individuals have about their pension arrangements and the way their pension contributions are invested.