§ Mr. Deakinsasked the Chancellor of the Exchequer how pension arrangements for civil servants of principal grade and above compare with those for hon. Members in the following respects: annual entitlement rate, contribution as a percentage of salary, length of service to qualify for maximum pension, pension payable after 25 years in relation to final salary, age of entitlement to full pension, proportion of pension payable to widows and proportion of pension payable in respect of children after death of pensioner.
§ Mr. HayhoeFull details of the superannuation benefits payable to civil servants (including those of principal grade and above) are contained in the "Rules of the Principal Civil Service Pension Scheme", copies of which are available in the Library of the House. The relevant provisions of the parliamentary scheme ar set out in the Parliamentary and Other Pensions Act 1972 and the Parliamentary Pensions Act 1978, as amended by 109W subsequent legislation, and the Fees Office can advise on the effects of these provisions. Briefly, the particular aspects mentioned compare as follows:
PCSPS Parliamentary Scheme (i) Annual entitlement rate Pension of 1/80 of pensionable pay for each year of service, plus lump sum of 3/80 of pensionable pay for each year of service Pension of 1/60 of final salary, part of which may be commuted to provide a lump sum (ii) Contribution rate 1½ percent, of pensionable pay for widows' or widowers' pensions, but a total effective contribution rate of 8 per cent, for all benefits 6 per cent, of salary (iii) Length of service to qualify for maximum pension 40 years at age 60 or 45 years at age 65 or over 40 years at age 65 or 45 years at age 70 or over (iv) Pension payable after 25 years' service 25/80 of pensionable pay in the best year of the last three years of service, plus lump sum of 75/80 25/60 of final salary, part of which may be commuted (v) Age of entitlement to full pension (that is, not actuarially reduced) 60 65 (or 62 on retirement at a dissolution after at least 25 years' service) (vi) Widows' pensions (a) On death in service 3 months at husband's full pensionable pay, followed by pension of half husband's pension enhanced as if he had retired on ill-health grounds on date of death (that is, 1/160 per year of enhanced service) 3 months at husband's full salary, followed by pension of half husband's pension enhanced as if he had retired on ill-health grounds on date of death (that is, 1/120 per year of enhanced service) (b) On death of pensioner 3 months at husband's full pension, followed by pension of half that rate (that is, 1/160 per year of service) 3 months at husband's full pension, followed by pension of half that rate (that is, 1/120 per year of service) (vii) Children's pensions (a) On death in service One quarter of civil servant's pension, enhanced as if he or she had retired on ill-health grounds on date of death, per child, or one third per child if no widow's or widower's pension payable. Maximum two children One quarter of Member's pension, enhanced as if he or she had retired on ill-health grounds on date of death, per child. Maximum two children (b) On death of pensioner One quarter of civil servant's pension per child, or one third per child if no widow's or widower's pension payable. Maximum two children One quarter of Member's pension per child. Maximum two children The provisions of the parliamentary scheme will be altered by a Bill which will shortly be introduced by my right
hon. Friend the Lord Privy Seal.