§ Mr. WillettsTo ask the Chancellor of the Exchequer what are the Government Actuary's estimates of the effect of the Budget proposal to end dividend tax credits on the ability of funded public sector pension schemes to meet their current and future liabilities; and if he will estimate the increased contributions that will be necessary for each scheme. [7403]
§ Dawn PrimaroloThe position will vary from scheme to scheme depending on factors such as the type of scheme, the make up of its investment portfolio and its financial circumstances. For example, many schemes have surpluses which can be used to cushion the effect. Pension schemes should also benefit from improved company performance as a result of encouraging quality long-term investment.
The employers' contribution rates to each individual funded public sector scheme are determined by the funds' own actuarial adviser—not necessarily the Government Actuary. Actuarial revaluations take account of all relevant considerations, including the high returns earned by many funds in recent years, as well as the changes to dividend tax credits.