HC Deb 28 July 1989 vol 157 cc1139-40W
Mr. Austin Mitchell

To ask the Chancellor of the Exchequer whether he will publish in the Official Report (i) his estimate of the employers notional contribution to notionally funded and unfunded schemes, (ii) figures for the Civil Service showing the percentage contribution made by the Government and its employees and (iii) his best estimate of the proportionate split between sources of pension income in the cases quoted in sub-paragraphs (a) and (b) of paragraph 22 of the Inland Revenue paper, using as a basis the information given in his answer of 11 November 1988, Official Report, column 235.

Mr. Lilley

I shall answer when resources permit.

Mr. Austin Mitchell

To ask the Chancellor of the Exchequer whether the payment of a lump sum pension is subject to the maximum pension rules; whether the estimated cost of the lump sum referred to in the table given in his answer of 11 November 1988,Official Report, columns 357–58, include (i) those who commute their pensions for a lump sum and (ii) provision for the beneficiary to replace the lump sum by an increase in pension; and at what cost to the Exchequer.

Mr. Lilley

Part of the benefits from a tax-approved pension scheme may be paid as a tax-free lump sum. The normal maximum lump sum benefit is 1.5 times final salary from an occupational scheme or 25 per cent. of the accumulated fund under a personal pension scheme. The estimated cost of the tax exemption for lump sum payments is derived from a survey of amounts paid out in lump sums on retirement in a given year.

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