§ Mr. WebbTo ask the Deputy Prime Minister how much was spent by his Department on paying pensions to retired employees of his Department in 2001–02; if he will estimate the corresponding amounts to be spent in(a) five years' time, (b) 10 years' time, (c) 20 years' time and (d) 30 years' time; if he will estimate in each case the proportion of such liabilities which will arise from (i) unfunded pension schemes and (ii) pre-funded pension schemes; and in the case of pre-funded schemes, if he will estimate the value of the corresponding pre-funded funds in each of these years. [57355]
§ Mr. LeslieThe Cabinet Office has responsibility for the Principal Civil Service Pension Scheme (PCSPS)—the occupational pension arrangement for civil servants.
The PCSPS is an unfunded public service scheme made under the Superannuation Act 1972. all payments of pension and related benefits to former members of the PCSPS or their dependants are made from the Civil Superannuation Vote, for which the Cabinet Office are accountable.
Net expenditure on civil service pension and related benefits for the year 2001–02 was as follows:
562W
Expenditure—2001–02 £ billion Gross 2.8 Net of employer and employee contributions 1.4
§ Mr. LeslieAll advisory and executive non-departmental public bodies are required to adopt a board members' code, based on guidance produced by my Department, and they should have registers of interests. The definition of interests is ultimately for individual Departments since they are best placed to decide what might be thought to influence members of their NDPBs.
The table lists the NDPBs sponsored by this Department and in each case indicates what the relevant Code of Practice is and where it is available.
Estimated net expenditure in five years' time, 10 years' time, 20 years' time and 30 years' time is estimated by GAD as follows:
Expenditure £ billion Gross Net of employer and employee contributions 5 years 3.0 1.1 10 years 3.2 1.2 20 years 3.6 1.6 30 years 3.7 1.6 New pension arrangements for the civil service are being introduced from 1 October 2002. These will give existing staff the choice between remaining in the existing scheme or moving to a new defined benefit scheme; new entrants will have a choice between joining the new defined benefit scheme or a good quality defined contribution arrangement. It has been assumed, solely for the purpose of these projections, that:
all existing staff will opt to remain in the existing scheme and continue to pay an employee contribution of 1.5 per cent. of pay; andall new entrants will opt to join the new defined benefit scheme with an employee contribution of 3.5 per cent. of pay.Options exercised by existing staff and new entrants are likely to differ from these assumptions but:
in circumstances where the future pattern of options is not known; andthe changes in pension arrangement are cost neutral for employers 563W the projections provide a reasonable estimate of future expenditure.Constant earnings, as at 2001–02, have been assumed throughout.