§ Lord Diamondasked Her Majesty's Government:
With reference to the recent two-stage increase in salaries of certain members of the Civil Service, the armed forces and the judiciary, what is their estimate of the total capitalised value of the consequential addition, covering both stages, to the pension rights of all those affected, assuming the continuance of current rates of interest and inflation.
The Chancellor of the Duchy of Lancaster and Minister for the Arts (The Earl of Gowrie)Anestimate of the total capitalised value of the additional superannuation rights would depend upon the future pattern of retirements over many years and could only be obtained at disproportionate cost. It is estimated that for retirements in the period 1st July 1985 to 28th February 1987 (by when both staged increases would have fully worked through to superannuation benefits) the additional cost in a full year for the Civil Service, the armed forces, and the judiciary would be £330,000 for pensions and £930,000 for associated lump sums.