§ Mr. Andrew MitchellTo ask the Chancellor of the Exchequer whether he will make a statement about the Government's policy of abating the pensions of public servants who are re-employed in the public service after retirement.
§ Mrs. Gillian ShephardThe Government have completed their review of the current abatement policy.
My hon. Friend the then Economic Secretary announced on 21 December 1989 at col 370 that the pay or pension of retired public servants would no longer be subject to abatement if they were re-employed in a different public service after retirement. This change did not extend to those who retire early from one public service and are subsequently re-employed in another. They 426W continue to be subject to abatement until they reach the normal retirement age in the public service from which they first retired.
The Government have now given further consideration to the abatement arrangements for those who are re-employed in the same public service from which they draw pension. Here, re-employment is a continuation of the employment from which the pension derives and we have concluded that a public service pension should not normally be payable where the employee has not genuinely retired from that public service. Circumstances may occur in the future in a particular public service for which a relaxation of abatement might be appropriate but no such case has been made so, for the present, we do not consider that any significant change is warranted in the current policy or its application. Abatement will generally continue to apply for those who are re-employed in the same public service from which they draw pension. There will, however, be some minor changes to remove anomalies which will ease the effect of abatement in some cases and will simplify administration.