§ Mr. Wilkinsonasked the Lord President of the Council whether he will make a statement about the rates of contribution payable by hon. Members for the purchase of added years of reckonable service under the parliamentary contributory pension scheme.
§ Mr. BiffenAs part of a wider review of the rates payable for added years by members of public service pension schemes, the Government Actuary has recommended revised rates for the purchase of added years by periodical contributions or by lump sum in the parliamentary contributory pension scheme. The proposed rates are on average about one-tenth higher for payments by periodic contribution, and about a quarter higher for payments by lump sum. The rates for purchases by instalments over four or five years are not affected.
The Government propose to introduce the new rates with effect from this summer, once the new options made available to hon. Members under the Parliamentary Pensions (Purchase of Added Years) (Amendment) Order 1981 (SI 1981 No. 800) have expired. The new rates will be applicable only to added years contracts entered into after they come into operation. The percentage contributions payable under added years contracts which hon. Members have entered into before the date of the change will be unaffected.