§ Lord Lester of Herne Hillasked Her Majesty's Government:
Further to the Written Answer by the Lord McIntosh of Haringey on 27 May (WA 160), how the pension for survivors of marriage is taken into account in public service pension schemes, and upon what financial basis. [HL3142]
§ Lord McIntosh of HaringeyThe actuary advising each scheme calculates the cost of the benefits accruing to current employees. These benefits include those payable in respect of prospective survivors following the employees' deaths.
Various assumptions are made by the actuary including the proportions of employees and former employees who at death will leave a survivor. The rates of contribution disclosed within resource accounts and FRS17 statements for 2003–04 for the public service pension schemes will be based on a rate of return net of prices of 3.5 per cent.