HC Deb 24 November 1975 vol 901 cc18-9W
Mr. Hooson

asked the Minister for the Civil Service (1) what is the maximum pension payable to a civil servant, expressed as a percentage of his final salary;

(2) what is the minimum number of years' service that is required before a civil servant qualifies for the maximum pension payable.

Mr. Charles R. Morris

Civil servants receive pensions calculated at the rate of 1¼ per cent. of pensionable pay for each year of reckonable service and a lump sum of three times this amount. This is well within the Inland Revenue code of practice for the approval of occupational pension schemes, which also requires that no more than 40 years' service can be taken into account at the normal retirement age. If retirement is deferred beyond that age, up to five extra years are allowed to count. In the Civil Service, pensionable pay is the actual pay received in whichever of the last three years of service gives the highest figure, and the maximum pension payable, after a minimum of 45 years' reckonable service, is thus 56.25 per cent. of this figure.

Mr. Hooson

asked the Minister for the Civil Service what percentage of a civil servant's salary is deducted for pension contributions; and what is the employer's contribution.

Mr. Charles R. Morris

Apart from the 1½ per cent. contribution which male civil servants pay for family benefits the pension scheme is non-contributory. However, in determining Civil Service pay rates by comparison with those for comparable employment outside the outside pay rates are reduced to take account of this factor and of differences in the value of benefits.

Mr. Hooson

asked the Minister for the Civil Service what arrangements have been made to protect the value of Civil Service pensions against increases in the cost of living.

Mr. Charles R. Morris

The Pensions (Increase) Act 1971, as amended by the Superannuation Act 1972, provides for public service pensions, which include Civil Service pensions, to be increased as necessary from 1st December each year in line with increases in the cost of living.