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Public Servants

Volume 164: debated on Thursday 21 December 1989

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To ask the Chancellor of the Exchequer whether he will make a statement about the Government's policy of abating the pensions of retired public servants who are re-employed in the public service.

The Government have been reviewing the current abatement policy and has decided upon a change. In future, the pay or pension of retired public servants will no longer generally be subject to abatement if they are re-employed in a different public service after retirement. However, those who retire early may continue to be subject to abatement until they reach the normal retirement age in the public service from which they first retired. The administrative arrangements to give effect to the change will be made as soon as possible.Abatement will continue to apply for those who are re-employed in the same public service from which they draw pension. The review of this arrangement is not yet complete. I will make a further statement in due course.