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Index-Linked Pensions

Volume 22: debated on Monday 26 April 1982

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asked the Chancellor of the Exchequer if he will compare the assessments of the value of index-linked pensions made by Target Life Assurance with the assessment made by his actuarial advisers set out in his Answer of 8 April, Official Report, c. 449.

[pursuant to his reply, 23 April 1982, c. 157]: The Government do not have sufficiently detailed information about the actuarial basis used by Target Life Assurance to make the comparison requested. Any such comparison would need to be treated with caution, since a quotation for an individual buying an annuity now would not be comparable with a valuation of the future pension rights of members of occupational schemes. The risks to be insured would be different in the two cases, and the life expectancy of individuals choosing to purchase increasing annuities can be expected to be higher than that of the membership of an occupational scheme.