§ Mr. CohenTo ask the Chancellor of the Exchequer, pursuant to the answer of 15 January, column418, on pension splitting and divorce, if he will set out the basis of his calculation of the cost of pension splitting to unfunded public services schemes in 1997. [11042]
§ Mr. WaldegraveIf pensions were split with the scheme member's ex-spouse taking a transfer value out, this would bring forward pensions benefit costs and reduce future liabilities. The potential net costs to unfunded public service schemes given in the earlier answer relate to this change. They assume splitting of accrued pension rights equally and payment of a transfer value from the scheme at the time of divorce in all new divorce cases involving current, but not former, employees who are members of these schemes. They also assume divorce rates by age derived from information for the three years 1991 to 1993. The figures take no account of administration costs.
55W