§ Mr. Woofasked the Secretary of State for Social Services, in view of the fact that the percentage reduction, in relation to actual earnings, in the lump sum retiring allowance for a married officer can represent more than the percentage paid for the actual retirement pension, if he will amend the National Health Service Superannuation Regulations to provide that the lump sum retiring allowance shall be reduced by one half for persons required to provide for a widow's pension.
§ Mr. EnnalsNo. I am advised that the cost of widows' pensions at the basic rate is actuarially equivalent to the two-thirds reduction of lump sum retiring allowances currently provided for by the Regulations.
§ Mr. Woofasked the Secretary of State for Social Services (1) to what extent it is calculated that the contributions of entrants to the National Health Service Superannuation Scheme could be reduced on the basis of funding the Scheme to the extent by which the optants of previous schemes do not pay the full actuarial amounts of the benefits they receive;
(2) what estimate he has made of the actuarial effect to date on the National Health Service Scheme of taking over the optants of previous schemes and of the trend of this effect in future.
§ Mr. EnnalsFollowing his investigation of the National Health Service Superannuation Scheme as at 31st
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Date Weekly rate of retirement pension Date for man plus wife on his insurance Average weekly earnings of male of manual workers Retirement pension as percentage of average earningsas (1) £ s. d. £ s. d. per cent. January, 1968 … … … 7 6 0 21 7 6 (2) 34.2 January, 1969 … … … 7 6 0 23 0 0 (2) 31.7 (1) Average earnings of male manual workers in manufacturing and some of the principal non-manufacturing industries covered by the inquiry conducted by the Department of Employment and Productivity in April and October each year. (2) As at the latest comparable dates for which figures are available, i.e., October, 1967, and October, 1968, respectively. March, 1955, the Government Actuary reported that one of the principal factors contributing to the initial deficiency of £34 million was the inadequacy of contributions for optants of all ages. This initial deficiency took account of future liabilities in respect of the optants and was met in full by the Government. This factor, therefore, does not affect the actuarial balance of the scheme and no question of reducing the rate of contribution for other entrants arises on this account.
§ Mr. Woofasked the Secretary of State for Social Services what study his Department has made of the comparative levels of contribution to, and benefit provided by, the National Health Service Superannuation Regulations and the corresponding schemes operated by the nationalised industries; and if he will make a statement.
§ Mr. EnnalsMy Department is represented on the Standing Inter-departmental Committee which co-ordinates policy on superannuation schemes in the public sector, including those of the nationalised industries. The provisions of the National Health Service Scheme are generally in line with those to be found in the nationalised industries. Such variations as exist result for different circumstances in the various fields of employment.