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Mr. Spellar
To ask the Chancellor of the Exchequer, further to his answer of 17 May, Official Report, column 13, what studies his Department is making of the cost and effectiveness of profit-related pay schemes.
Mr. Dorrell
Ministers keep the cost and effectiveness of the tax relief for profit-related pay under review, and the current Inland Revenue management plan, published on 14 May, contains proposals for an independent study of the effects of PRP schemes.
| (a) | (b) | (c) | (d) | |||
| Scheme | Normal retirement age | Date from which window's benfits are in-cluded | Personal benefits | Maximum pen-sionable service | ||
| Men | Women | Pension | Lump sum | |||
| Principal civil service pension scheme | 60 | 60 | 1949 | 1/80 of final pensionable pay per year of service | 3 times pension | 40 years by 60, 45 years by 65 |
| Teachers' pension scheme | 60 | 60 | 51972 | 1/80 of final pensionable pay per year of service | 3 times pension | 40 years by 60,45 year by 65 |
| Local government | 160–65 | 160–65 | 1953 | 1/80 of final pensionable pay per year of service | 3 times pension2 | 40 years by 60, 45 years by 65 |
| NHS pension scheme Officers | 60 | 360 | 1948 | 1/80 of final pensionable pay per year of service | 3 times pension2 | 40 years by 60,45 years by 65 |
| Medical and dental practitioners | 60 | 60 | 1948 | 1·4 per cent, of earnings revalued | 3 times pension2 | 40 years by 60, 45 years by 65 |
| Mental health officers | 55 | 55 | 1948 | (a) service up to 20 years: 1/80 (b) service in excess of 20 years: 2/80 of final pensionable pay per complete year of service | 3 times pension2 | 30 years by 55 Overall maximum of 33 years |
| Police pension scheme | 448–55 | 448–55 | 1921 | (a) service up to 20 years: 1/80 (b) service in excess of 20 years: 1/80 of final pensionable pay per year of service | By commuting portion of pension | 30 years |
| Firefighters pension scheme | 450–55 | 450–55 | 61948 | (a) service up to 20 years: 2/80 (b) service in excess of 20 years: 2/80 of final pensionable pay per year of service | By commuting portion of pen-sion | 30 years |
| Armed Forces pension scheme Officers and warrant officers | 37–55 | 37–55 | Before 1919 | 28·5 per cent, of representative pay after 16 years rising to 48·5 per cent, after 34 years | 3 times pension | 34 years |
| Other ranks | 40–55 | 40–55 | 1950 | 31·833 per cent, of representative pay after 22 years rising to 48·5 per cent, after 37 years | 3 times pension | 37 years |
| 1 From age 60, subject to completion of 25 years of service. | ||||||
| 2 Lump sum reduced for married men in respect of their pre-1972 service as contribution to provide half rate widow's pension. | ||||||
| 3 Female nurses may retire on unreduced benefits from age 55, subject to certain conditions. | ||||||
| 4 Normal retirement age is dependent upon length of service. Police inspectors and above may serve beyond age 55. | ||||||
| 5 From 1966 to 1972 the scheme provided for widow's benefits on a voluntary basis. | ||||||
| 6 Between 1925 and 1948 the widows of firefighters who died or retired as a result of injury sustained on duty received a pension. | ||||||