HC Deb 14 January 2004 vol 416 cc814-5W
Mr. Laxton

To ask the Chancellor of the Exchequer what assessment his Department has made of the level of pension liabilities in the public sector due to final salary pension schemes. [147766]

Ruth Kelly

The level of unfunded pension liabilities are published in the Resource Accounts of the separate schemes. The latest aggregate estimate, based on the 2001–02 accounts, is of accrued liabilities of £380 billion as at 31 March 2002. The figure will be updated when the 2002–03 Resource Accounts are published shortly.

It does not include the liabilities of the funded Local Government Pension Scheme (LGPS). The latest estimate of their liabilities were set out on 17 March 2003, Official Report, column 614W. It also does not include the funded liabilities of schemes in the wider public sector run by statutory corporations. Information on these schemes are not held centrally and the responsibility for them rests with the relevant sponsoring Departments.

Mr. Laxton

To ask the Chancellor of the Exchequer what steps his Department is taking to reduce the public sector pensions liabilities caused by final salary pension schemes. [147767]

Mr. Boateng

Public service pension schemes are reviewed regularly to ensure that the benefits represent value for money and continue to contribute to the overall aim of the remuneration package to recruit, retain and motivate staff. As part of this process the Government recently announced its decision to raise the normal pension age of public servants from 60 to 65 in the Green Paper "Action on Occupational Pensions" Cm 5835, June 2003. Schemes are consulting on how this might be achieved.

The pension liabilities arising from rights accrued to date cannot be adjusted: the private sector is protected by section 67 of the Pensions Scheme Act 1995 and the public services by the Superannuation Act 1972.