§ Mr. Arthur Lewisasked the Minister for the Civil Service whether, in view of the fact that a public servant details of whom have been supplied to him, is due to retire on an indexed pension of £14,000 per annum with the opportunity of taking up other full- or part-time employment without loss of pension rights and that in the present position this pension will be worth £348,478 per annum by the time he has reached 83 years of age, he will take action to amend this pension scheme.
18W
§ Mr. Charles R. MorrisMy hon. Friend may have sent details of the individual case referred to, but as yet I have not received them, and, therefore, I am unable to comment on his specific figures. I cannot accept his assumption that inflation will continue at 15 per cent. for 23 years, but would point out to him that, on that assumption, an index-linked pension would buy no more at the end than it did at the start. Indeed, on that assumption the price of a 20p loaf of bread would rise to some £5.
§ Mr. Tim Rentonasked the Minister for the Civil Service whether he will arrange for estimates to be made of the cost of inflation-proofing Civil Service pensions, in real terms, for the years beyond 1980–81; and whether he will then publish these estimates in the Official Report.
§ Mr. Charles R. MorrisAssuming real terms means constant demand on resources, indexing a pension to the cost of living does not increase its cost in real terms.