HC Deb 15 January 2004 vol 416 cc832-3W
Mr. Tynan

To ask the Secretary of State for Northern Ireland what assessment he has made of the current funding level of the Northern Ireland Local Government Officers' Superannuation Fund. [147533]

Angela Smith

The Northern Ireland Local Government Officers' Superannuation Committee is required, by regulation, to obtain an actuarial valuation of the assets and liabilities of its pension fund every three years. The next actuarial valuation exercise takes place on 31 March 2004. Each quarter the Committee and the fund's actuary monitor the position and the Department of the Environment is advised accordingly, on a regular basis.

Mr. Tynan

To ask the Secretary of State for Northern Ireland what the estimated additional cost of a rise in the current employer contribution rate to 11.9 per cent. for the Northern Ireland Local Government Officers' Superannuation Fund would be to his Department's annual budget; and whether the spending plans for 2005–06 reflect such a possible increase. [147534]

Angela Smith

For all employing authorities contributing to the Northern Ireland Local Government Officers' Superannuation Fund, the estimated cost of an increase from the current employer contribution rate of 4.6 per cent. to 11.9 per cent. would incur further contribution income amounting to £32,605,830 in one year. There are currently 209 employing authorities, including district councils, education and library boards, the Northern Ireland Housing Executive, Housing Associations and certain schools and colleges, all of which would have to budget for any increase.

The rate of 11.9 per cent. is, however, at this stage, an indication of the potential required increase and the position will be determined when the actuarial valuation of the fund, as at 31 March 2004, is obtained by the Northern Ireland Local Government Officers' Superannuation Committee. It is anticipated that a stepped approach to increasing contribution rates would be adopted, over the period 1 April 2005 to 31 March 2007. The position would also be reassessed at the 31 March 2007 valuation. Efforts would be made to keep annual increases in the contribution rate within the range of 2 per cent. to 4 per cent. of pensionable payroll. 2005–06 spending plans do not, as yet, take account of any potential increase.