HL Deb 24 May 2000 vol 613 cc86-8WA
Lord Alli

asked Her Majesty's Government:

What is the proportion of: (a) public sector pension schemes: and (b) private sector pension schemes, which make provision for widows continuing to receive their partner's pension after remarriage; and [HL2473]

What is the proportion of: (a) public sector pension schemes; and (b) private sector pension schemes, which provide pensions to cohabiting partners after the death of their partner; and [HL2474]

What is the proportion of: (a) public sector pension schemes; and (b) private sector pension schemes, which provide pensions to same sex partners after the death of their partner; and [HL2475]

What is their estimate of the cost to: (a) public sector pension schemes; and (b) private sector pension schemes, of extending provision of pensions to widows after remarriage; and [HL2476]

What is their estimate of the cost to: (a) public sector pension schemes; and (b) private sector pension schemes, of extending provision of pensions to cohabiting partners after the death of their partner; and [HL2477]

What is their estimate of the cost to: (a) public sector pensions and (b) private sector pensions; of extending provision of pensions to same sex partners after the death of their partner. [HL2478]

Lord McIntosh of Haringey

The Government do not collect comprehensive information on the pension benefits provided by private sector schemes or public corporations. However, research by the Government Actuary's Department suggests that the majority of private sector pension schemes provide for widows continuing to receive a pension after remarriage although in most cases the amount of the spouse's pension is reduced if there is a significant age difference. Most large occupational pension schemes in the private sector allow for payment of survivor's benefits to the unmarried partners of the opposite sex of scheme members, but in an overwhelming majority of cases this is at the discretion of the trustees. Survivors' benefits are provided to same-sex surviving partners in a minority of schemes, usually at the trustees' discretion.

The public service pension schemes at present provide survivors' pensions only for the legal spouse of a deceased member. This pension is suspended on the remarriage or cohabitation of the widow or widower. The Local Government Pension Scheme has taken the opportunity to amend its scheme rules and allow lifetime pensions for widows in the context of introducing a new scheme. Other public service schemes are considering the extension of lifetime pensions to widows.

There is currently no provision to pay survivor benefits to opposite-sex and same-sex partners in the public service schemes. The Government have indicated that if the general membership of a public service scheme wanted to extend these benefits and were prepared to pay the additional costs, they would be prepared to consider how practicable arrangements could be devised for achieving this in the context of a statutory scheme.

The Table shows the extra costs that would be incurred by public service occupational pension schemes, based on estimates provided by the Government Actuary's Department.

Cash cost for all public service schemes1 Lifetime Spouse's Pensions Adult Dependants1 Pensions2
(i) Future service of current actives £150 million per annum £200–£1,000 million3 per annum
(ii) Past service of current actives £1.5 billion (capitalised cost) £2–£10 billion3 (capitalised cost)
(iii) Past service of current actives, pensioners and deferred pensioners £3 billion (capitalised cost) £4–£20 billion32 (capitalised cost)
1 Public service schemes include the Local Government Pension Scheme, the NHS Pension Scheme, the Teachers' Pension Scheme, the Principal Civil Service Pension Scheme, the Armed Forces Pension Schemes, the Police and Firefighters' Pension Schemes and other schemes which operate on an analogous basis.
2 Includes cost of extending to both opposite and same sex partners.
3 Ranges are given because the cost would depend on the definition of dependent adopted and on any restrictions imposed on the availability of benefit that might apply.