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Pensions

Volume 960: debated on Thursday 14 December 1978

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asked the Minister for the Civil Service whether he will publish as much detailed information at the latest and most convenient stated dates, showing to what extent civil servants and hon. Members on the same or similar salary scales are entitled to pension rights after 10, 20 or 30 and more years' service ; what such pension would be ; what contributions are made towards such pension ; what is the earliest age at which a civil servant with 30 or more years' service can claim his pension ; what this would be on the assumption he was on a salary scale of £6,897 per annum on retirement ; and if he will give similar details for hon. Members.

Under the principal Civil Service pension scheme civil servants who have completed five years' qualifying service are entitled to receive pensions of 1/80th of pensionable salary and lump sums of 3/80ths of pensionable salary for each reckonable year of service. All male civil servants contribute 1½, per cent. of salary for widows' pensions and, as part of the pay research process, reductions are made in salary rates to reflect the value of other benefits, including pensions increases. The earliest age at which a civil servant can retire voluntarily with immediate payment of pension is 60. The benefits payable after 30 years of reckonable service based on pensionable pay of £6,897 would be a pension of £2,586 and a lump sum of £7,759.Under the parliamentary pensions scheme Members of Parliament who have completed four years' qualifying service are entitled to receive pensions of 1/60th of pensionable salary for each year of reckonable service, part of which may be commuted into a lump sum. Since 2nd August 1978 the contribution rate has been 6 per cent. of pensionable salary. An hon. Member with 30 years of reckon-able service could retire voluntarily at a General Election following his 62nd birthday and would then receive a pension of £4,686—based on current pensionable pay of £9,372. Part of the pension could be commuted into a lump sum, up to a maximum of £10,544, leaving an annual pension of £3,677—or £3,798 for a woman Member. A civil servant retiring with the same pensionable pay and length of service would receive the same lump sum and a pension of £3,515.