§ Mr. KynochTo ask the Secretary of State for Scotland if he will make a statement on the report by the Government Actuary on his valuation of the national health service superannuation scheme in Scotland.
§ Mr. LangI have today placed copies of the report in the Library.
The report concludes that the rate of contribution required from employers to meet the scheme's future liabilities, after taking account of employees contributions, should be set at 4 per cent. of pensionable pay, a reduction of 1½ per cent. on the existing rate of 5½
1989–90 1990–91 1991–92 1992–93 1993–94 Number of cases 1,040 480 625 759 849 A breakdown by grade and by reason of redundancy is not readily available and could be obtained only at disproportionate cost.
430Wper cent. The scheme's liabilities do not include the cost of pensions increase. Most of the costs of inflation proofing pensions are borne directly by the Exchequer and are not reflected in the above contribution rates.
I have decided to accept the actuary's recommendation and to reduce the employers contribution rate with effect from 1 April 1995. The rates of contribution paid by members of the scheme are not affected by this.
The reduction in employers' contributions will release an additional sum of some £22 million towards the funding of the NHS in Scotland.