§ Sir John Hallasked the Secretary of State for Social Services what recommendations the Joint Superannuation Consultative Committee has made following the report by the Government Actuary on the National Health Service superannuation scheme; and if he will make a statement.
§ Sir Keith JosephIn reply to my hon. Friend the Member for Wells (Mr. Boscawen) I said on 12th April—[Vol. 854, c.363–4.]—that proposals arising from the report of the Government Actuary on the National Health Service superannuation scheme would be referred to the Joint Superannuation Consultative Committee.
The committee has considered these proposals and I have now received its 20W second supplementary report containing three major recommendations. The first is that the additional | per cent. employee contribution that was introduced from 1st October 1972 should be discontinued and that the employer's contribution should not, in future, be a fixed percentage but should be at whatever rate is advised by the Government Actuary as necessary to keep the scheme in balance.
The second recommendation is that the rate of a widow's benefit in respect of her husband's service before 25th March 1972 should be raised from one-third of his accrued pension to one-half, which is the same rate as for service after that date. The present provision for reduction of the lump sum retiring allowance or death gratuity in respect of service before that date will remain, but the amount of the reduction will not be increased by reason of the one-half rate widow's pension being provided.
The third recommendation is for the introduction for the first time of an element of widow's pension cover for those members who, on transfer to the National Health Service, elected to remain subject to earlier terminal salary superannuation arrangements which provided no such facility; and for an increase in the cover provided where this was only minimal.
I have accepted all these recommendations. The reduction in the contribution rate has, in fact, already been implemented with effect from 1st August this year and statutory authority is contained in the National Health Service (Superannuation) (Amendment) (No. 3) Regulations 1973 which were laid before the House on 9th October. The other two changes will be incorporated in further amending regulations and will be applied retrospectively to the widow of any member who has retired or died in service since 25th March 1972. My right hon. Friend the Secretary of State for Scotland has accepted that the Committee's recommendations should apply equally to the Scottish scheme and is making corresponding regulations.
The effect of these changes, and of the improvements previously introduced, is to convert the valuation surplus of £288 million as at 31st March 1969 as revealed by the Government Actuary's report into a deficit of about £5 million to be carried 21W forward into the current valuation period. Normally this would not be advisable: indeed, retention of a "working balance" is customary; but as some further surplus will have arisen between 31st March 1969 and the operative date of most of the changes—25th March 1972—the Government have agreed that the whole of the surplus, and a little more, might be absorbed on this occasion.
This report, together with the two previous ones, completes what is undoubtedly the most comprehensive review of the provisions of the superannuation schemes for the National Health Service since its inception 25 years ago. The joint committee will remain in existence to provide a means for consultation on superannuation and allied matters but I would like to take this opportunity, on behalf of my right hon. Friend and myself, of thanking the members of the committee for the work they have done in
NUMBERS OF DEATHS IN ENGLAND AND WALES FROM DROWNING (EXCLUDING SUICIDES AND MURDERS) (ICD E.929 for 1963–1967) (ICD E.910 and E.984 for 1968–1972) Age 1963 1964 1965 1966 1967 1968 0 … … … 8 11 10 4 5 10 1 … … … 17 24 19 28 19 21 2 … … … 12 27 25 34 27 23 3 … … … 12 26 21 28 18 28 4 … … … 18 21 25 25 16 24 5 … … … 11 20 16 9 19 17 6 … … … 25 14 26 20 26 21 7 … … … 13 21 19 22 27 20 8 … … … 30 20 19 30 20 16 9 … … … 12 12 9 15 17 8 10 … … … 14 19 11 10 10 10 11 … … … 8 11 10 14 9 7 12 … … … 2 13 11 10 6 8 13 … … … 7 11 11 8 8 7 Total 0–13 … … … 189 250 232 257 227 220 22W
Age Total Swimming pools Sea Inland waters Other and unspecified places 1969 0 … … … 11 1 1 1 8 1 … … … 26 2 — 9 15 2 … … … 33 4 — 16 13 3 … … … 14 4 — 7 3 4 … … … 18 1 — 13 4 5 … … … 20 3 1 14 2 6 … … … 15 — 2 13 — 7 … … … 27 1 1 19 6 8 … … … 25 4 3 17 1 9 … … … 21 4 4 11 2 10 … … … 13 — 1 9 3 11 … … … 12 3 3 3 3 12 … … … 8 2 — 5 1 13 … … … 8 — 1 7 — Total 0–13 … … … 251 29 17 144 61 Percentage … … … 100 12 7 57 24 carrying out the review and producing the three reports. A copy of the second supplementary report has been placed in the Library, as were copies of the earlier reports.