§ Mr. HanleyTo ask the Lord President of the Council when the Government Actuary's valuation report on the parliamentary contributory pension fund will be laid before the House.
§ Mr. WakehamIn accordance with section 5 of the Parliamentary and Other Pensions Act 1972, the Government Actuary's valuation report on the parliamentary contributory pension fund is being laid before the House today. The House will have an opportunity to debate the report and the Government will not take any decision on its recommendations until after that debate. The report includes a recommendation that the standard contribution for Members should be about 20 per cent. of salary, of which the Exchequer should contribute 11 per cent., while the Member's contribution should remain at 9 per cent. This compares with the position previously when the Exchequer contribution was set at 13 per cent. with a 5 per cent. supplement, during which time a substantial surplus has built up in the fund. This surplus would by convention normally be used to reduce the employers' contribution. The Actuary therefore recommended that the Exchequer contribution from April 1989 should fall to 4.4 per cent., returning to 11 per cent. from April 1997.