HC Deb 24 February 1986 vol 92 cc437-8W
Mr. Stott

asked the Chancellor of the Exchequer if he will publish an actuarial statement of the cost of implementing the reckonability of former unestablished service in the General Post Office, prior to the 1969 Act, for superannuation purposes.

Direct Revenue Cost of Relief
Life assurance* Mortgage interest Approved pension schemes Employers' contributions to funded pension scheme Retirement annuity premiums Age allowance
(£ million (£ million)
1978–79 260 1,110 450 1,200 70 265
1979–80 430 1,450 500 1,400 110 290
1980–81 530 1,960 700 1,600 .. 370
1981–82 520 2,030 1,000 1,800 .. 390
1982–83 570 2,150 1,100 1,850 .. 450
1983–84 690 †2,750 1,400 1,900 .. 490
1984–85 710 3,500 1,750 1,950 .. 420
1985–86 640 4,750 .. .. 325 425

expenditure White Paper, as percentages of the planning total excluding the reserve, central privatisation proceeds and the adjustments which cannot be allocated to economic category. Figures prior to 1980–81 are not readily available.

Mr. Brooke

Unestablished service in the Post Office after 14 July 1949 reckons in full for superannuation purposes. An estimate of the cost of allowing unestablished service before that date to reckon in full, 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 total cost over 25 years would be of the order of £70 million. Such an improvement would, however, have to be extended to the Civil Service and costs would then rise to the order of £550 million over 25 years.