§ Mr. Robert Hughesasked the Chancellor of the Exchequer (1) what provisions exist for the protection of, or transfer of pension rights of Government employees who cease to be employed on Government service, other than by retirement and transfer to private sector employment;
(2) what plans he has to protect pension rights or to transfer pension rights to employees in Government service when they cease to be so employed, other than by retirement, and take employment in the private sector as a consequence of the Government's privatisation proposals.
§ Mr. HayhoeCivil servants with five or more years' qualifying service who leave before the retiring age to take up employment in the private sector have their accrued superannuation rights preserved for payment to them at the retiring age. Alternatively, they may, if they wish, have their accrued rights transferred to the pension scheme of the new employer, provided that the scheme is contracted-out under the Social Security Pensions Act 1975; is approved for the purpose by Inland Revenue; and is prepared to accept a transfer payment. The transfer arrangements apply also to staff with less than five years' service. These entitlements will be available to those who take employment in the private sector as a consequence of the Government's privatisation proposals.