§ Mr. David ShawTo ask the Chancellor of the Exchequer what is the estimated impact on the public sector unfunded pension liability of the recent proposals from each of the public sector pay review bodies. [36350]
§ Mr. JackRecent proposals from review bodies have not contained this information. The Government Actuary's Department periodically reassesses the accrued unfunded pensions liabilities of public service schemes taking account of movements in pay, other economic variables and changes in demographic features. However, these liabilities cannot readily be broken down according to review body.
§ Mr. ShawTo ask the Chancellor of the Exchequer if he will place in the Library a ready reckoner of the change in unfunded pension liabilities caused by salary changes in per cent. increments between 1/4 per cent. and 10 per cent. on the basis of current levels of inflation and discount rates. [36340]
§ Mr. JackEach 1 per cent. rise in pay above the level of price inflation is estimated to increase the cash equivalent transfer value of unfunded pension liabilities in public service pension schemes by about £700 million. These additional liabilities will become payable over a lengthy period reflecting particularly the span of years over which existing staff reach retirement age and the period of years over which their pensions are payable.