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Departmental Pensions

Volume 475: debated on Tuesday 6 May 2008

To ask the Secretary of State for International Development what the (a) rate and (b) cost was of employer contributions for each public sector pension scheme for which his Department has responsibility in each year since 1990-91; and if he will make a statement. (200708)

In respect of members of the defined benefit schemes, employer contribution rates are assessed for each of four ranges of pay levels. The rates for 2008-09 are:

Band

Full-time annual salary(£)

Rate from 1 April 2008 (percentage)

Band 1

19,500 and under

17.1

Band 2

19,501 to 40,500

19.5

Band 3

40,501 to 69,000

23.2

Band 4

69,001 and above

25.5

The scheme rules are laid before Parliament and copies are in the House Library.

For members of the partnership (defined contribution scheme), the employer pays a basic contribution of between 3 per cent. and 12.5 per cent. (depending on the age of the member) into a stakeholder pension product and will match the member's contribution up to a limit of 3 per cent. Employers also contribute a further 0.8 per cent. of pensionable salary to cover the cost of risk benefit cover (death in service and ill health retirement).

For 2007-08 Department for International Development (DFID) paid employers' contributions of £13,995,973.

Information on previous years could be provided only at disproportionate cost.