§ Mr. MacKinlayTo ask the Secretary of State for the Home Department (1) what plans he has to alter the funding of police pensions to fully funded schemes; and if he will make a statement; [30258]
(2) what would be the transitional cost to Her Majesty's Government if they were to facilitate a change in the financing of police pensions from revenue to fully funded self-financing schemes. [30259]
§ Mr. MacleanMy right hon. and learned Friend has no plans to alter the police pension scheme to a fully funded scheme.
The current police pension scheme came into operation in 1948. It is based like many other public service pensions scheme on the "pay as you go" principle under which the funding for liabilities is provided as and when those liabilities arise. The transitional cost of creating a fund which would be capable of meeting existing police pensions liabilities, including the present value of future pension benefits accrued to date, has been estimated by the Government Actuary's Department as about £20 billion.