§ Mr. PurchaseTo ask the Secretary of State for Education and Employment what estimate he has made of the contribution from public funds to the teachers' pension fund; and if the contribution is estimated(a) to rise, (b) to fall or (c) to remain the same in real terms over the next 20 years. [129304]
§ Mr. BlunkettTeachers' pensions in England and Wales are mainly funded through taxation. Pension contributions from teachers and their employers in the public sector provide most of the cash income. The table gives cash forecasts for the four years to 2003–04. No further cashflow figures are available.
850W
£ million Financial year Gross expenditure Gross income Net expenditure 2000–01 3,680 2,030 1,650 2001–02 3,850 2,150 1,700 2002–03 4,200 2,420 1,780 2003–04 4,550 2,570 1,980 A longer term view of the financial position of the Teachers' Pensions Scheme is given in the 1996 Valuation Report laid before the House on 30 March 2000. This compares the notional assets of the fund, derived from past pension contributions, with current and future pension liabilities. Every five years the Government Actuary reviews this position and specifies a pension contribution rate which will eliminate any surplus or deficit identified in the report over 40 years.