§ Mr. Arthur Lewisasked the Minister for the Civil Service whether he will publish in the Official Report the pension receivable by a Member of Parliament who retires on 5th May at the age of 58 years after 31 years' service; and how 17W this pension compares with a civil servant on the same salary scale as a Member of Parliament who retires on the same basis.
§ Mr. Charles R. MorrisThe Member would be due for a pension of £2,833 a year preserved for payment from age 65 which is the normal retiring age for the scheme. This is based on an accrual rate of 1/60th of relevant terminal salary for each year or part year of reckonable service. Pensionable salary has been taken as £8,000 a year from 13th June, 1975, and reckonable service as 21 years and 162 days, given that not more than 10 years may reckon prior to 16th October 1964. Part of the pension could be commuted for a lump sum up to a maximum rate of 3/80ths of relevant terminal salary for each year of reckon-able service.
If all the 31 years were fully pensionable a civil servant on an equivalent pensionable salary would be due for a pension of £3,072 a year and a lump sum of up to three times the pension preserved for payment from the normal retiring age of 60, at which age his Department has the right to require him to retire. The pension accrues at the rate of 1/80th of pensionable pay a year. With the 3/80ths lump sum this is broadly the equivalent, in actuarial terms, of a 1/60ths pension.
In both cases the benefits would attract increases under the Pensions (Increase) Act 1971. These would accrue notionally until the preserved benefits came into payment.