§ Dr. Jack CunninghamTo ask the Secretary of State for Trade and Industry how many workers who transferred from AEA Technology to British Nuclear Fuels on 2 December 2003 lost pension benefits as a 1677W result; for what reasons they are required to pay increased contribution rates for pensions in their new jobs; and if she will make a statement. [159886]
§ Mr. Timms[holding answer 10 March 2004]: The staff that transferred on 1 December 2003 have until the end of May to decide which pension option they would like to take up out of those presented to them as part of the flexible transfer process.
As a minimum, transferring staff retained the value of their existing AEA Technology ("AEAT") pension fund. This existing pension fund had diminished during employment with AEAT but on transfer the funds were augmented via a mechanism involving AEAT, BNFL and employee's contributions. The Government Actuary's Department considered that the value of pension benefits arising from the augmented funds to represent a fair and equitable transfer of benefits under the stated Government guidelines on transfer of pension benefits within the public sector.
Transferring staff contribution rates are the same as those that they would have been required to make under their previous employment with A EAT if the transfer had never occurred.
§ Mr. WatsonTo ask the Secretary of State for Trade and Industry what discussions she has had with BNFL about their overseas contracts. [160017]
§ Mr. TimmsBNFL operates within a Governance Framework agreed by the Department as shareholder. Within this framework, BNFL is required to seek departmental agreement to specific contracts subject to certain criteria. On behalf of the Secretary of State, officials have regular discussions with BNFL regarding their overseas contracts in this context.