§ Mr. WebbTo ask the Secretary of State for Health how much money was spent by the relevant pension fund on paying pensions to retired(a) NHS staff and (b) GPs in 2001–02; if he will estimate the corresponding amounts to be spent in (i) five years' time, (ii) 10 years' time, (iii) 20 years' time and (iv) 30 years' time; if he will estimate in each case the proportion of such liabilities which will arise from (a) unfunded pension schemes and (b) pre-funded pension schemes; and in the case of pre-funded schemes, if he will estimate the value of the corresponding pre-funded funds in each of these years. [66564]
§ Mr. HuttonThe national health service pension scheme for England and Wales does not keep a separate record of the pensions paid to retired NHS staff and general practitioners. However, the total amount paid for 2001–02 by the NHS pension scheme in respect of pensions to retired members and their dependents was £2.8 billion.
Using assumptions consistent with the periodic valuations of the NHS pension scheme the Government Actuary's Department has estimated the corresponding total amounts of pension expenditure in future years as follows (in constant earnings terms):
- Five years: £3.1 billion
- 10 years: £3.5 billion
- 20 years: £4.7 billion
- 30 years: £5.8 billion.
The NHS pension scheme is an unfunded scheme with members and employers paying contributions, as determined by the Government Actuary, to defray the cost of benefit provision. Because there is no pre-funding of the scheme's liabilities, these contributions have not been included as an offset to the above figures, although in practice they will be an offset to the cost.