§ Mrs. McKennaTo ask the Secretary of State for Northern Ireland if he will make a statement on the report by the Government Actuary on his investigation of the Health and Personal Social Services Superannuation Scheme in Northern Ireland 1989 to 1994. [97600]
§ Mr. George HowarthI have accepted the report and today placed copies in the Library.
The report concludes that it would be prudent to increase the rate of contribution required from employers to meet the scheme's future liabilities. The current rate is 4 per cent. of pensionable pay. The Government Actuary is content with our proposals that the rate should increase 5 per cent. from 1 April 2001, with a further increase to 7 per cent. from 1 April 2003.
The cost of index linking National Health Service pensions is currently met by the Exchequer. As the report notes, the Department of Health and Social Services and the Department of Finance and Personnel have agreed in principle that the scheme should assume its pensions increase liabilities from 1 April 1994 under a financial restructuring. Officials are discussing the basis of such changes and I will inform the House when final agreement is reached. In the meantime, the Government Actuary considers that the proposed increases in employer contribution rates are consistent with the nature of the changes likely to be required under the restructuring.