HC Deb 25 March 1985 vol 76 cc98-9W
Mr. Andrew Bowden

asked the Chancellor of the Exchequer what would be the cost of counting in full for pension purposes all service, both unestablished and established, for all serving and retired civil servants (a) immediately, (b) immediately, but with no recalculation of the lump sum payment nor of pension arrears for retired civil servants and (c) on a phased implementation basis over 20 years starting with those retirees over the age of 80 years and with no recalculation of the lump sum nor of pension arrears.

Mr. Hayhoe

An estimate of the cost of allowing unestablished service before 14 July 1949 to reckon in full for Civil Service pension purposes, including the cost of arrears of pension and increased lump sums, is not available. If no arrears of pension were paid to those who have already retired and there is no change in the basis of calculating lump sum retirement benefits, it has been estimated that the first year cost would be of the order of £34 million. Figures based on a phased implementation over 20 years are not available. If the change were made over 10 years, starting with those now aged 70 and over, the first year cost would be about £18 million. The total cost over 25 years has been estimated to be of the order of £550 million, or £460 million if implementation were phased over 10 years.