§ Mr. Pawseyasked the Minister for the Civil Service if, in respect of (a) civil servants, (b) local government officers and (c) teachers, and for each year from 1975–76 to 1980–81, she will give the percentages of their pensions financed by (i) member's contribution, (ii) employer's contribution, (iii) additional indexing contribution and (iv) cost of living increase.
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§ Mr. HayhoeCivil Service pensions are unfunded and are not financed by direct employer and employee contributions except for a small contribution paid by male civil servants for widows' benefits.
In the local government superannuation scheme, payments towards pensions fall into two categories: contributions by employers and employees to pension funds in respect of the future basic benefits of serving staff, and pensions increase payments by employers to current pensioners. The following table sets out approximately, for each of the years in question, the breakdown of contributions to funds between employers and employees, and the proportion of benefits in payment represented by pensions increase.
Local Government (England and Wales) Proportion of total contributions to funds paid by: Pensions increase as % of total benefits in payment Year (a) employees per cent. (b) employers per cent. per cent. 1975–76 36 64 27 1976–77 36 64 29 1977–78 36 64 30 1978–79 36 64 32 1979–80 40 60 33 1980–81 40 60 36 Teachers' pensions are financed similarly to those of local government employees, except that contributions are notionally invested in Government stock rather than in actual funds, and that pensions increases are a liability of the Exchequer and not the last employer. The corresponding information for teachers, on the same basis as for local government is:
Teachers (Great Britain) Proportion of total contributions paid by: Pensions increase as % of total benefits in payment Year (a) employees per cent. (b) employers per cent. per cent. 1975–76 40 60 33 1976–77 39 61 37 1977–78 40 60 40 1978–79 42 58 41 1979–80 42 58 42 1980–81 42 58 42