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Pensions

Volume 451: debated on Monday 30 October 2006

To ask the Secretary of State for Communities and Local Government how much was spent on the local government pension scheme in each year since 1980-81; what forecasts she has made of how much will be spent in each year between 2007-08 and 2050-51; and how many members of the scheme there are. (95999)

The amount spent on the local government pension scheme (LGPS) involving contributions paid by employers and employees, plus investment income, and the amount spent annually on pension benefits between 1995-96 and 2004-05 is shown at columns two and three respectively in the following table. Information before 1995-96 is not available.

£ billion

Total income

Expenditure on benefits

1995-96

4.2

2.6

1996-97

4.7

2.7

1997-98

5.0

2.9

1998-99

5.5

3.0

1999-2000

5.9

3.1

2000-01

6.3

3.3

2001-02

6.7

3.5

2002-03

7.0

3.6

2003-04

7.6

3.8

2004-05

8.3

4.0

No forecasts have been made of how much will be spent between 2007-08 and 2050-51. Future pension liabilities, and the amount of employer contributions, taking into account the expected level of investment returns needed to match future liabilities, are determined by fund actuaries every three years. The next fund valuation exercise takes place in England and Wales on 31 March 2007.

At 31 March 2005, the number of active members, pensioners with deferred benefits and pensioners in the local government pension scheme was 1.6 million; 757,000 and 952,000 respectively. All the above data are derived from annual returns submitted to the Department by LGPS administering authorities in England and Wales.

To ask the Secretary of State for Communities and Local Government how much was spent on the firefighters pension scheme in each year since 1980-81; what forecasts she has made of how much will be spent in each year between 2007-08 and 2050-51; and how many members of the scheme there are. (96001)

DCLG holds data on the actual amount spent by Fire and Rescue Authorities (FRAs) on the firefighters pension scheme for the years 2003-04 to 2005-06 as well as estimates, provided by the FRAs, of the amount that will be spent on both the 1992 and 2006 firefighter pension schemes for the years 2006-07 until 2010-11. These data are shown in the following table.

£000

Financial year

Pensions expenditure by FRAs

2003-04

Actual

376,117

2004-05

Actual

415,286

2005-06

Actual

455,474

2006-07

Estimate

460,303

2007-08

Estimate

481,671

2008-09

Estimate

530,586

2009-10

Estimate

553,283

2010-11

Estimate

570,732

These figures are only for the amount spent in England on the firefighter pension scheme by FRAs.

There were 31,062 members of the 1992 firefighter pension scheme at the 31 March 2006.