HL Deb 20 November 2000 vol 619 cc65-6WA
Lord Roberts of Conwy

asked Her Majesty's Government:

What sums they have obtained annually as guarantor from surpluses arising from the Mineworkers Pension Scheme (MPS) and the British Coal Staff Superannuation Scheme (BCSSS) since 1994 at constant prices; what percentage increases have been awarded annually to pensioner beneficiaries under the MPS and the BCSSS; and what has been their total value annually at constant prices. [HL4467]

Lord Sainsbury of Turville

As a result of arrangements established in 1994, the Government receive 50 per cent of actuarial surpluses in the MPS and the BCSSS in exchange for providing the schemes with solvency guarantees. The cash values of receipts from the two schemes since payments began in 1996–97 are as follows:

Cash £ millions 1996–97 1997–98 1998–99 1999–2000 2000–01
BCSSS 39.5 39.5 107.1 107.1 53.9
MPS 0.0 113.0 113.0 0.0 257.0
Total 39.5 152.5 220.1 107.1 310.9

The department's calculation of the value of these sums at 1999–2000 prices, using the GDP Deflator (the 2000–01 deflation factor is an estimate based upon HM Treasury's current working assumptions), is as follows:

1999–2000Prices £ millions 1996–97 1997–98 1998–99 1999–2000 2000–01
BCSSS 42.9 41.7 109.8 107.1 52.7
MPS 0.0 119.3 115.9 0.0 251.3
Total 42.9 161.0 225.7 107.1 304.0

Pension levels are a matter for the trustees, but over the same period MPS and BCSSS members have received the following valuation surplus bonuses in addition to the annual inflation-linked increases they receive to maintain real value of their pensions:

MPS: 20 per cent payable from 1997 and approx. 9 per cent payable from 2000

BCSSS: 6.7 per cent payable from 1996 and 10.8 per cent payable from 1998

The total cash values to scheme members of these post-surplus bonuses is as follows (figures for the current financial year are not yet available):

Cash £millions 1996–97 1997–98 1998–99 1999–2000
BCSSS 29.0 29.0 66.0 78.0
MPS 0.0 23.0 69.0 76.0
Total 29.0 52.0 135.0 154.0

The department's calculation of the value of these sums at 1999–2000 prices is:

1999–2000 Prices £ millions 1996–97 1997–98 1998–99 1999–2000
BCSSS 31.5 30.6 67.7 78.0
MPS 0.0 24.3 70.8 76.0
Total 31.5 54.9 138.5 154.0