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Pensions

Volume 449: debated on Wednesday 19 July 2006

To ask the Secretary of State for Work and Pensions pursuant to the Answer of 21 March 2006, Official Report, column 235W, on pensions, if he will place in the Library a copy of the advice he has received attributing £60 million of this increase in the Pension Protection Fund levy to changes in the level of schemes' assets, together with the effect of changes to the relevant market interest rates on the liabilities and £220 million to changes in the mortality assumptions which reflected similar changes to the assumptions used by insurance companies when setting buy-out terms, together with the detail of the assumptions, including mortality tables and interest rates, used in making that attribution. (73779)

There has been no increase in the PPF levy estimate. We cannot provide all the details requested on the increase in the estimate produced by the Government Actuary's Department (GAD). I refer the hon. Member to the reply I gave on 2 May 2006, Official Report, columns 1528-529W, which set out the difficulties of doing so. However, a summary of the GAD update will be placed in the Library shortly.

To ask the Secretary of State for Work and Pensions what estimate he has made of the cost to fully compensate, with index-linking, all former Allied Steel and Wire workers who lost occupational pension savings; and if he will make a statement. (78293)

The estimated cost of compensating all ASW scheme members in full is £250—£450 million in cash terms and £120—£210 million in net present value, based on limited information on the ASW scheme