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Pensions (Unestablished Service)

Volume 960: debated on Thursday 14 December 1978

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asked the Minister for the Civil Service what would be the current cost of implementing the recommendations published by the Priestley Commission in 1955, that unestablished service in the Civil Service, prior to 1949, should reckon in full for pension purposes.

pursuant to his reply [Official Report, 24th October 1978; Vol. 955, c. 764–5],gave the following information:The revised estimate of the cost over a period of 25 years of reckoning in full for superannuation purposes unestablished service given before 14th July 1949 is about £400 million. As with the earlier figure, this estimate assumes that both past and future lump sum benefits would not be adjusted and that the revision of pensions would be made in stages over a period of 10 years, without payment of arrears. The increase in the estimate arises from salary and pensions increases awarded since 1975 but no allowance has been made for any future increase.