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CDC Capital Partners: Pensions

Volume 462: debated on Friday 29 June 2007

To ask the Secretary of State for International Development what plans he has to provide guarantees for (a) present and (b) former employees of CDC that their pensions will be assured following any flotation or sale. (146706)

DFID has no present plans for a flotation or sale of CDC.

Pension benefits for current and former CDC employees are provided through the CDC pensions scheme. This is a conventional UK occupational pension scheme, established under trust and with its assets entirely separate from CDC. No payment can be made from the scheme to CDC, except in circumstances where the scheme is wound up, and a surplus exists after all benefits have been secured in full by the purchase of annuities.

The most recent actuarial valuation was undertaken on 31 March 2006. This showed the scheme, although better funded than most UK pension schemes, to have a shortfall of assets against liabilities. Additional contributions are being paid by CDC to remove that shortfall. In addition, CDC has put aside significant additional assets in a contingent funding arrangement which safeguards the future payment of the shortfall contributions and provides materially improved security for the accrued benefits of scheme members.