asked the Minister for the Civil Service for how many years ahead he estimates the cost of Civil Service pensions; what factors he takes into account in making those estimates; and what rate of inflation he is assuming for each of the years for which he makes an estimate.
Estimates of expenditure on Civil Service pensions are made in the annual public expenditure surveys which are carried out in constant price terms, such estimates to 1983–84 will be included in the Government's forthcoming public expenditure White Paper. These take account of forecast retirements in each year as well as the assumed mortality rate of pensioners. The actuarial cost of Civil Service pensions is assessed by the Government Actuary in his review of the adjustment in pay research for differences in superannuation benefits. The assumptions about future price and salary inflation used in the 1979 review are set out in his 1979 report, a copy of which is in the Library.
asked the Minister for the Civil Service whether he intends to stop the indexation of pensions for the higher grades of the Civil Service.
I refer the right hon. Member to the supplementary reply I gave my hon. Friend the Member for Wolverhampton, South-West (Mr. Budgen) on 20 February.—[Vol. 979, c. 440]