§ Mr. BurnsTo ask the President of the Board of Trade when the British Coal pension schemes will be guaranteed by Government; when the new industry-wide schemes for the privatised industry will be set up; what protected person status will mean; and what scheme contribution rates will be payable in future.
§ Mr. EggarIt is currently envisaged that, subject to the Coal Industry Bill having secured parliamentary approval and Royal Assent, Government guarantees for the mineworkers' pension scheme—MPS—and the British Coal staff superannuation scheme—SSS—would come into effect in mid-September this year. At that time the schemes would be modified as necessary by regulations as proposed in the Bill. It is envisaged that the two new industry-wide schemes proposed for the industry after privatisation would then be established in December.
On the day when the industry-wide schemes are established employers of contributing members of the MPS and SSS who cease to be or are not British Coal employees—that is, any employees of British Coal or its subsidiaries transferred on that day to successor companies and all other persons who are scheme members on that day but are no longer or were never employed by the corporation or its subsidiaries—will be obliged to give such employees the option to join the industry-wide schemes in which the employees will gain statutory protected-person status. Successor employers of members of the MPS or SSS who remain as British Coal employees for some period after the establishment of the industry-wide schemes and who are subsequently transferred to the successor employers will be obliged at the time of the transfer to give such employees the option to join the industry-wide schemes in which the employees will gain protected-person status. Protected person status will operate to safeguard the pension benefit structures of the MPS and SSS which will be reproduced within the industry-wide schemes.
Contribution rates for employees and indicative estimates of initial employer contribution rates are set out for each industry-wide scheme as percentages of pensionable earnings:
4W
Employees' contributions Per cent. Employees' contributions Per cent. IWS-MPS 5.25 9.25 IWS-SSS 5.00 15.00 There will be no transfer of employer contribution holidays from the MPS or SSS to the industry-wide schemes.