§ Mr. David ShawTo ask the Chancellor of the Exchequer if he will provide an explanation of the differences in the figures for the liabilities of the main unfunded public service pension schemes set out in(a) the answer to the hon. Member for Dover of 26 April 1993, Official Report, column 289 and (b) the answer to the hon. Member for Birkenhead (Mr. Field) on 26 February, Official Report, columns 358-59 showing which elements are due to (a) timing and (b) other factors. [25858]
§ Mr. WaldegraveThe figures for the capital value of the liabilities of unfunded public service pension schemes are estimates based on data which become available at periodic intervals and, in some cases, in a very limited form. The £170 billion relating to 31 March 1991 was subsequently revised to £185 billion when more reliable data became available.
Various factors have contributed to the increase in liability between 1991 and 1993. In the case of deferred benefits and pensions in payment, which are linked to the retail prices index the increases implemented from April 1991 and April 1992 amounted together to just over 15 per cent.
323WFor employees, liabilities increase in line with pay levels, and some groups had significant pay awards during this period. Other contributing factors affecting the increase include the overall increase in numbers, that is, the number of employees, plus deferred pensions, plus pensions in payment, and the increase in amounts of pension resulting from a large number of redundancies and premature retirements.