§ Mr. SarwarTo ask the Chancellor of the Exchequer what changes have been made in the past year by the Contributions Agency in its policy on employment of civil servants between the ages of 60 and 65 years. [121321]
§ Dawn PrimaroloThe Contributions Agency (CA), a former agency of the Department of Social Security (DSS), ceased to exist with effect from 1 April 1999 when, as part of the transfer arrangements with the Inland Revenue, all CA functions and associated staff moved across to the Revenue.
187WPrior to the transfer with the Revenue the CA, in line with other Government Departments and agencies, had delegated responsibility to formulate their own retirement age policy. Their policy, operated under the central DSS policy framework, provided for a normal retirement age of 60 for all staff. As part of the transitional arrangements on moving to this policy, some staff had been granted extensions of service up to a maximum retention date of 31 July 1999.
As part of the negotiations prior to the transfer, the Revenue undertook to honour any commitments given to staff in respect of extension of service in place at 31 March 1999. This undertaking was embodied in the terms and conditions package negotiated with the relevant trade unions, and accepted by CA staff by way of a ballot. Thus after the transfer any former member of the CA who had been granted an extension of service was able to remain with the Revenue until the expiry of that extension, up to the maximum retention date of 31 July 1999. Where an extension was not agreed at 31 March 1999, then staff would subsequently retire in line with Revenue retirement age policy, which at the time of the transfer was similar to CA policy, in providing for a normal retirement age of 60.
The Revenue has recently introduced a concession to the normal retirement age of 60, whereby staff with less than 25 years pensionable service at age 60 may be retained until this level of pensionable service is attained, or reach age 65, whichever is the earlier. This concession was part of a package of terms and conditions changes attached to a Modernisation Agreement with the Public and Commercial Services Union (PCS) accepted as part of the revised 1999 pay offer. The concession took effect on 21 January 2000.
On a wider front, the Revenue is carrying out a review of its current retirement age policy and, following consultation with the relevant trade unions, any resultant policy changes will be announced in due course.