Civil Service Pensions

HC Deb 27 January 2004 vol 417 cc279-80W

Mr. Chope

To ask the Minister for the Cabinet Office if he will take action to ensure that payments of civil service pensions by Capita Hartshead to retired civil servants resident in France enjoy the same rate of exchange as payments of the state pension; and if he will make a statement. [150877]

Mr. Alexander

The rate of exchange for payments in overseas currency is determined by the UK banks responsible for the conversion. The rates offered on any one day may vary from bank to bank, and within each bank depending on the terms and conditions applicable to each customer. However, in view of the relative volume of payments to state pensioners resident overseas, it is unlikely that any bank would offer exactly the same terms and conditions to an occupational pension scheme as those agreed for the state scheme.

The bank responsible for converting overseas payments for occupational pension schemes administered by Capita Hartshead regularly monitors its rates against those offered by competitors, including those responsible for converting payments for other occupational pension schemes, to ensure it offers a competitive service.