HL Deb 21 May 1974 vol 351 cc1428-9WA
THE EARL OF CLANCARTY

asked Her Majesty's Government:

  1. (i) in view of the plight of the Federal Pensioners since the dissolution of the Federation of Rhodesia and Nyasaland in 1963, whether they will use their influence to persuade the Governments of Zambia and Malawi to contribute their appropriate shares to the Fund and
  2. (ii) what was the deficit of each Guarantor of the Fund in July, 1965, July, 1970, and July, 1973.

LORD GORONWY-ROBERTS

(i) I do not think there are grounds for such an approach. Actuarial deficits in the Central African Pension Fund were found following periodic valuation of the Fund by actuaries in 1965 and 1970. These actuarial deficits fall to be corrected by the guarantors concerned (the United Kingdom, Southern Rhodesia, Zambia and Malawi) in the manner provided in Section 5 of the Central African Public Officers Agreement 1964 (Cmnd. 2387).

The Crown Agents who are trustees of the Fund confirm that all undertakings given following the 1965 deficit have been fulfilled. They also regard the arrangements made following the 1970 declared deficit as satisfactory and sufficient pending the outcome of the next actuarial review.

(ii) July 1965 Actuarial Defict:

£
U.K. 1,563,594
Southern Rhodesia 2,814,469
Zambia 1,407,235
Malawi 469,078
TOTAL 6,254,376

July 1970 Actuarial Deficit:

£
U.K. 1,400,233
Southern Rhodesia 2,520,420
Zambia 1,260,210
Malawi 420,070
TOTAL 5,600,933

No actuarial valuation is available for 1973; the next quinquennial valuation being due as at July 31, 1975. These are actuarial deficits and relate to possible under-provision for the future. In no case do they indicate a current cash deficiency. Nor do the deficits themselves stand in the way of possible increases in pensions.

(iii) As regards increases in Federal Pensions the position remains as notified to Parliament in the Written Answer from the then Minister of State at the Foreign and Commonwealth Office to a question by Mr. John Biggs-Davison on February 12, 1973 (Hansard col. 246); and in the Answer by the then Minister for Overseas Development to a Question from Sir John Tilney on October 17, 1973 (Hansard cols. 187–88).