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Teachers' Superannuation Fund

Volume 78: debated on Friday 10 May 1985

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asked the Secretary of State for Scotland what is the average payment and number of years of payment to recipients out of the Scottish teachers' superannuation fund from the date of retirement to the date of death, indicating any payments to dependants.

In the year to 31 March 1985 the average pension paid to former members of the teachers' superannuation scheme in Scotland was £4,004 inclusive of pensions increase. The average period during which pension had been paid to former members who died in that year, rounded to the nearest full year, was 16 years. Figures for the dependants of those who died in the year are not readily available. At 31 March 1985 there were 2,177 pensions in payment to dependants of deceased teachers.

asked the Secretary of State for Scotland what is the average total annual payment (a) out of and (b) into the Scottish teachers superannuation fund; and if, in the latter case, he will give a breakdown of income from employees' contributions, employers' contributions, investment and any other source.

Since the teachers' superannuation scheme for Scotland has a notional but not an actual fund, all income is paid to the Exchequer, which in turn meets all expenditure. In 1983–84, the latest year for which figures are available, expenditure in respect of the scheme, including pensions increase but excluding the cost of administration, amounted to £106·6 million: teachers contributed £38·7 million, their employers contributed £49·9 million, and £1·1 million was received from miscellaneous sources including transfer values.It is for actuarial purposes only that the assets and liabilities of the scheme are treated as a notional fund. The notional interest assessed as arising from notional investment was calculated as £107·7 million for the year. The cost of pensions increase, which accounts for 38 per cent, of total expenditure, is met separately by central Government and is not charged to the fund.