§ Mr. LuffTo ask the Chancellor of the Duchy of Lancaster when he expects to lay an order specifying the principal civil service pension scheme administration as a function which contractors may be authorised to carry out; and if he will make a statement. [22986]
§ Mr. FreemanAn order under the Deregulation and Contracting Out Act 1994 was laid today before Parliament in draft, and will be subject to affirmative resolution of both Houses.
Approval of the order by Parliament will enable Departments to market test their day-to-day administration of the principal civil service pension scheme, and associated schemes. Occupational pension arrangements for civil servants will continue to be provided through the PCSPS. Market testing of the administration function will not affect pension benefits in any way. Competition will ensure value for money and the focus on performance outputs will help to raise the quality of service to scheme members. Decisions on the timing and method of competitive tendering will be for each employing Department to take. It will be open to existing service providers, such as the Paymaster agency, to compete on a value-for-money basis. Such bids will be at full cost and will be considered rigorously. The unions will be consulted on individual market tests as they arise.
Responsibility for management of the PCSPS—and associated schemes—including setting the rules, will remain within government. This function transferred from HM Treasury to the Office of Public Service and Science on 1 April 1995. Expenditure on civil service pension benefits will continue to be met from the civil superannuation vote, responsibility for which also transferred to the Office of Public Service.