§ Baroness Turner of Camdenasked Her Majesty's Government:
Whether, when the electricity supply industry was privatised, they were aware of a likely surplus in the pension scheme and the intention of the privatised employers to use that surplus for their own benefit; and, if so, why the privatised companies were allowed so to benefit. [HL931]
§ The Minister for Science, Department of Trade and Industry (Lord Sainsbury of Turville)The identification of any surplus within the Electricity Supply Pension Scheme is established through actuarial valuations which are normally undertaken triennially. The most recently available valuation at the time of privatisation was that prepared as at 31 March 1989, which declared a surplus of £89 million, £70 million of which was used to meet the excess cost of pension increases from 1 April 1990.
The rights of pensioners are protected under the scheme, which requires that any arrangements made in relation to either its administration or the investment management of assets do not reduce entitlement to benefits.