Local Government Superannuation Scheme (Hansard, 9 January 1985)

§ Mr. Patrick Jenkin

The Government have a long-standing commitment to make regulations allowing local authority part-time employees into the local government superannuation scheme. In the present climate, however, we have been reluctant to impose on local authorities the additional costs which they will have to bear by way of employers' contributions to the pension funds when the regulations are made. We have recognised that there will be compensating savings, both direct and indirect, in the longer term; but it has still been necessary to find ways of reducing or eliminating the immediate extra cost arising from the proposals.

Accordingly, I now propose that the regulations giving part-time employees who work for 15 to 30 hours per week the option of joining the pension scheme should also provide that all employees who are given this option will lose their eligibility for a gratuity in respect of future service. This should ensure that the overall savings which local authorities might be expected to achieve from the outset should broadly equal their additional contributions. I have therefore decided to proceed with the preparation and drafting of combined regulations on this basis.

Because of the extensive consultations that will be necessary, it would not be realistic to expect the regulations to be made before April 1986. However, in view of the inconvenience which the delay in announcing a decision about the proposals has caused to the employees who will be affected and to their employers, I am prepared to authorise local authorities who wish to bring eligible part-time employees into the pension scheme in advance of the regulations to do so, on the clear understanding that there will be no compensating increase in targets or Exchequer grants.

477W

My right hon. Friend the Secretary of State for Scotland will be putting in hand the preparation of corresponding regulations for Scotland.