HC Deb 22 March 1996 vol 274 cc359-61W
Mr. Redmond

To ask the Secretary of State for Education and Employment when customer organisation of the Teachers Pensions Agency were given notice in respect of proposals for its privatisation; and if she will make a statement. [21447]

Mr. Squire

We commissioned KPMG to consider the feasilibility of letting a contract for the administration of teachers' pensions to the private sector. We published their findings in January 1995, and sought the views of a wide audience, including representatives of members of the scheme and their employers. We extended the consultation deadline from March to April 1995 at the request of the consultees to allow adequate time for views to be expressed. We announced in May 1995 our intention to seek expressions of interest from the private sector. We further announced in November 1995 our intention to invite six companies to tender for the administration of the scheme.

Mr. Redmond

To ask the Secretary of State for Education and Employment what assessment she has made of the(a) advantages and (b) disadvantages of privatising the Teachers Pensions Agency. [21449]

Mr. Squire

We asked KPMG to consider whether letting a contract for the administration of teachers' pensions to the private sector would offer better value for money than retaining the service in the public sector. They concluded that it was likely to do so. We have tested this conclusion at each key stage of the contractorisation process before proceeding to the next stage. We shall not let a contract unless we can prove that there will be substantial savings to the taxpayer. At the same time we shall be looking to improve the service beyond that currently provided by the agency. We have considered whether there are disadvantages to letting a contract and concluded that there are not.

Mr. Redmond

To ask the Secretary of State for Education and Employment which of the functions of the Teachers Pensions Agency have been considered for privatisation; and if she will make a statement. [21448]

Mr. Squire

We are looking at the feasibility of letting a contract for the whole of he administration of the teachers' superannuation scheme. We have made clear that responsibility for the operation of the scheme will remain with my right hon. Friend the Secretary of State, who will be answerable to Parliament. The Teachers Pensions Agency currently provides policy advice to Ministers on teachers' pensions. If we let a contract, officials within the DEE will be responsible for providing such policy advice.

Mr. Redmond

To ask the Secretary of State for Education and Employment if she will ensure that teachers' pension entitlements will not be reduced and that the new arrangements will be more efficient than the current ones in the event of the privatisation of the Teachers Pensions Agency; and if she will make a statement. [21528]

Mr. Robin Squire

We have stated on a number of occasions that the operation of the teachers' superannuation scheme is unaffected by our deliberations on the future of the Teachers Pensions Agency. Responsibility for the scheme will remain with the Secretary of State, and any changes in entitlement or benefit will be subject to parliamentary scrutiny. We will let a contract for the administration of the scheme only if it offers the prospect of efficiencies greater than could be achieved by retaining the service in the public sector.

Mr. Redmond

To ask the Secretary of State for Education and Employment what public consultation process has been arranged in respect of proposals to privatise the Teachers Pensions Agency; and if she will make a statement. [21450]

Mr. Squire

Organisations representing teachers, their employers, Teachers Pensions Agency staff and others were consulted in January 1995 about the feasibility of letting a contract for the future administration of the teachers' superannuation scheme. We have made our decisions public at each key stage of the contractorisation process. Members of the scheme, their representatives and employers, and members of the public have been given a number of opportunities to offer views on the future administration of the scheme. Many have done so, and we have given their comments due consideration.

Mr. Redmond

To ask the Secretary of State for Education and Employment if the staff of the Teachers Pensions Agency were consulted in advance of the announcement of proposals for its privatisation; and if she will make a statement. [21446]

Mr. Squire

Yes. Teachers Pensions Agency staff were consulted at an early stage on our intentions to look at the feasibility of letting a contract for the future administration of the teachers superannuation scheme. The staff of the TPA have been actively involved in the preparation of tender documentation, including the drawing up of a specification of service requirements and performance standards. They have also had the opportunity to meet the prospective tendering companies. The staff and their trade union representatives have been kept informed of developments throughout the process.

Mr. Redmond

To ask the Secretary of State for Education and Employment what factors underlay the timetable for bids in respect of privatising the Teachers Pensions Agency; and if she will make a statement. [21530]

Mr. Squire

There are no specific factors underlying the timetable for tendering for administration of teachers' pensions. We have undertaken a careful assessment of the feasibility of letting a contract at each key state of the tendering process before proceedings further. We would like to reach an early decision in order to remove any uncertainties for staff of the Teachers' Pensions Agency. This will not, however, be at the expense of a thorough evaluation of the bids submitted. We hope to make an announcement shortly about the future of the agency.