HC Deb 07 June 1967 vol 747 cc229-30W
Mr. Brian Parkyn

asked the Secretary of State for Commonwealth Affairs what arrangements have been made to ensure that the pensions of former officials of the Federation of Rhodesia and Nyasaland continue to be paid.

Mr. Bowden

The Central African Pension Fund established by the Federation of Rhodesia and Nyasaland (Dissolution) Order in Council, 1963 S.I. 1963/2085) is administered by the Crown Agents for Overseas Governments and Administrations as Trustees to the Fund. Payments arrangements are governed by the Public Officers' Agreement of 1964 (Cmnd. 2387) between Great Britain, Malawi, Southern Rhodesia and Zambia.

The Fund has, since its establishment, been facing a serious problem of liquidity because its assets are almost entirely in ex-Federal locally issued stocks which the Trustees have been reluctant to dispose of, since to do so would adversely affect the long term interests of the Pension Fund.

To help meet the problem of liquidity funds have been made available by Zambia, Malawi and the Smith regime. In addition, the Crown Agents, as Trustees, have made available £250,000 from funds at their disposal. In order that this may continue to be available they require a guarantee by H.M.G. as a party to the Public Officers' Agreement.

Although we do not regard ourselves as bound under the Agreement to do other than consult with the other parties in respect of temporary cash deficits, in order to ensure that the Trustees have sufficient liquid funds to continue paying pensioners we have agreed to seek Parlia- mentary approval by way of a token supplementary estimate to guarantee to make up to £250,000 available to the Trustees, if required in 1967–68, to meet the temporary cash deficit. Any amounts paid to the Trustees under this guarantee will be offset against our obligation under the Public Officers' Agreement to contribute 25 per cent. of any actuarial deficit. This will enable the Trustees to continue payments for some time to come. We hope, however, that the actuarial survey currently under way will be complete before the end of 1967–68 and the Fund replenished in accordance with the provisions of the Public Officers' Agreement.