§ Mr. Raphael Tuckasked the Secretary of State for Education and Science how the teachers' contribution of 6 per cent. of their salaries towards their pension 400W compares with the average in the public and private sectors of employment.
§ Mr. ArmstrongAn average figure is not available but the Government Actuary's fourth survey of occupational pension schemes, related to 1971, showed that 64 per cent. of the membership of contributory schemes in both sectors paid less than 6 per cent. and 34 per cent. paid 6 per cent. or more.
§ Mr. Raphael Tuckasked the Secretary of State for Education and Science what are the particular benefits to teachers from their pension schemes.
§ Mr. ArmstrongI am writing to my hon. Friend with the information.
§ Mr. Raphael Tuckasked the Secretary of State for Education and Science if he will give the most recent available figures of income and expenditure for one year for the Teachers' Pension Fund, and state whether these figures take into account income from investment.
§ Mr. ArmstrongFor the financial year 1972–73, the latest year for which audited figures are available, income, other than investment income, was £181.2 million and expenditure £88.3 million. These figures are from my Department's appropriation account and will be adjusted in due course for valuation account purposes.
§ Mr. Raphael Tuckasked the Secretary of State for Education and Science how the excess of income from the teachers' contributions over amounts paid out in pensions has been invested; and in what way such investment has been used to the benefit of teachers.
§ Mr. ArmstrongIncome from teachers' contributions does not exceed expenditure. Income from teachers' and employers' contributions together exceeds expenditure. Interest is credited to the teachers' superannuation account as though the excess had been invested in long-dated Government securities. This notional investment income and the contribution income together secure future benefits in respect of accrued entitlements to date.
§ Mr. Tuckasked the Secretary of State for Education and Science what is the present percentage yield of moneys related to the Teachers' Pension Fund and 401W the amount at present in such a notional fund.
§ Mr. ArmstrongFor the financial year 1970–71, the latest year for which valuation accounts have been prepared, the yield on the balance in the account was a little under 6 per cent. It is likely to be higher in subsequent years as a result of changes in the ways in which new money and some old money in the account are deemed to be invested. The yields in the following three years are expected to be 8¾ per cent. in 1971–72, 9½ per cent. in 1972–73 and 11½ per cent. in 1973–74.
The fund had a notional balance of £1,567.7 million at 31st March 1971.
§ Mr. Raphael Tuckasked the Secretary of State for Education and Science why the Teachers' Pension Fund is not administered by a body on which employers' and
35 years' service 40 years' service Description of teacher Salary Pension Supplement* Lump sum Pension Supplement* Lump sum £ £ £ £ £ £ £ 1. Trained non-graduate on scale 2 2,688.00 1,177.53 40.92 3,224.92 1,345.75 46.76 3,657.94 2. Trained non-graduate on scale 4 3,228.75 1,390.00 48.30 3,806.83 1,588.58 55.20 4,317.98 3. Trained good honours graduate on scale 3 3,000.00 1,313.42 45.64 3,597.09 1,501.05 52.16 4,080.05 4. Trained non-graduate on scale 5 3,612.00 1,582.39 54.99 4,333.72 1,808.44 62.84 4,915.59 *Supplement payable under the Pensions (Increase) Act 1974. These figures are included in those for pension in the preceding column.
§ Mr. Raphael Tuckasked the Secretary of State for Education and Science how many schoolmasters have drawn pensions for five years or more, following retirement at 65, in the most recent years for which figures are available; and what percentage of schoolmasters who retired in that year is represented by this figure.
§ Mr. ArmstrongThis information is not available.
§ Mr. Raphael Tuckasked the Secretary of State for Education and Science what is the pension entitlement of the widow of a schoolmaster who dies during the first five years of his teaching service.
§ Mr. ArmstrongThe widow of a teacher who dies in service before having completed five years of pensionable service is entitled to payment of a short-term pension at the rate of the teacher's
402Wteachers' associations are equally represented.
§ Mr. ArmstrongSince the fund is notional, with investment restricted to long-dated Government securities, my right hon. Friend sees no need for an administering body of this nature.
§ Mr. Raphael Tuckasked the Secretary of State for Education and Science what are the retiring salaries of teachers who have served for (a) 35 years and (b) 40 years; and what are the pensions payable in each case.
§ Mr. ArmstrongLength of service is only one of a number of factors determining individual teachers' salaries. Following are some examples assuming retirement on 31st August 1974 and continuous service of 35 and 40 years respectively immediately preceding that date:
salary immediately before his death. This is paid for three months if there is no child, for four and a half months if there is one child, and for six months if there are two or more children. In addition a death gratuity, approximately equal to a year's salary, is payable to the teacher's estate; this will normally become available to the widow.