§ James PurnellTo ask the Chancellor of the Exchequer what savings public sector pension schemes are predicted to make from the projected growth in single pension households on a like for like basis; and what the estimated costs are of introducing unmarried partner pensions across the public services. [55474]
§ Mr. Andrew SmithThe Government set out their policy regarding the provision of unmarried partner pensions in their Green Paper "A new contract for welfare: Partnership in Pensions" (Cmnd 4179, December 1998): if the membership of a public service scheme wanted to extend eligibility for survivors' pensions to unmarried partners and were prepared to meet the additional costs, the Government would be prepared to consider how practicable arrangements could be devised for providing this within a statutory scheme.
An important factor underlying this policy is cost. Estimates by the Government Actuary's department show that the additional cash cost for introducing unmarried partner pensions across the public services could range from £350 to 00A;1,000 million a year for the future service of current members, depending on the definition of dependent partner adopted and any restrictions imposed on the availability of benefit. There would be significant additional capitalised costs associated with any wider extension of unmarried partner benefits, for example, to cover past service.
Estimates of any potential savings public service schemes might gain from the projected growth in single pension households could be derived separately only at disproportionate cost. The expected change in family structures, however, is just one of a number of factors which influence the long-term costs of the public service schemes. Many of these factors are expected to result in an increase in long-term costs, with increased life expectancy of pensioners being highly significant.
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