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Departmental Pensions

Volume 477: debated on Friday 13 June 2008

To ask the Secretary of State for Health 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. (200713)

Information from 1990-91 to 2006-07, the latest year that pension scheme accounts are available, is shown in the following table. Increases in contributions in 2000-01 and 2001-02 reflect the phased increase in employers contributions following the 1994 valuation of the scheme, which was published in October 1998. The figures from 2003-04 include changes in relation to the retail prices indexation for existing pensioners for which funding was devolved from HM Treasury to the Department in 2003-04, and which was fully devolved to scheme employers from 2004-05. It has been agreed as part of the review of the NHS Pension Scheme that there will be a cap on employers’ contributions in relation to increases in costs relating from improvements in the value of the scheme to members of 14.2 per cent. from 2012, when the 2008 valuation is expected to be implemented, and of 14 per cent. from 2016.

Contribution rate (percentage)

Employer contributions (£000)

1990-91

4

394,055

1991-92

4

458,077

1992-93

4

506,644

1993-94

4

488,072

1994-95

4

497,957

1995-96

4

525,623

1996-97

4

554,201

1997-98

4

605,052

1998-99

4

663,982

1999-2000

4

723,950

2000-01

5

925,169

2001-02

7

1,504,273

2002-03

7

1,632,536

2003-04

14

3,588,337

2004-05

14

3,890,167

2005-06

14

4,301,122

2006-07

14

4,579,685

Source:

Government Actuary’s Department, Appropriation accounts and “NHS Pension Scheme” resource accounts