§ Ms LawrenceTo ask the Chancellor of the Exchequer what plans he has concerning the treatment of the pensions of public servants transferring to private sector employers. [87160]
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§ Mr. MilburnThe key principles are that staff transferring to private sector employers under PFI and other PPP deals should continue to have access after the transfer to a good quality occupational pension scheme, under which they can continue to earn pension benefits through future service on a basis which overall is materially at least as good as they had in the public sector; and that they should have the option of transferring their accrued pension benefits to the new employer's pension scheme on terms which give them a full credit for their past service.
I am issuing new guidance to Departments and Agencies today which reinforces these principles and ensures that they will be applied consistently and openly to all transfers of Government staff.
The new guidance will be adopted immediately by Government Departments and Agencies. I hope that other employers in the public sector will also apply its principles to contracting arrangements where staff transfer to the private sector, and the Government will encourage and facilitate that outcome. This does not affect arrangements being made in respect of PFI and other PPPs which are already underway.
Copies of the new guidance, and the associated Statement of Practice by the Government Actuary, have been placed in the Library of the House.