§ Mr. DenhamTo ask the Chancellor of the Exchequer what estimate he has made of the reduction in employer contributions to public sector superannuation schemes as a result of members opting out to join personal pension schemes. [38266]
§ Mr. Waldegrave[holding answer 25 October 1995]: No separate assessment has been made of employer contributions as a result of members opting out. Actuaries perform regular valuations on public service schemes. If they advise that employers' contribution rates needs adjusting to take account of the number of opted-out members, and any other factors, appropriate action to adjust the rate would be taken.
Departments with superannuation votes bid for the sum of money that they estimate they need to cover the cost of pensions. This takes into account the level of employer contributions which are appropriated in aid against expenditure. If there are significant numbers opting out then, other things being equal, there will be an increase in the vote.