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Local Government: Pensions

Volume 481: debated on Monday 27 October 2008

To ask the Secretary of State for Communities and Local Government how much has been paid (a) by (i) employees and (ii) employers into and (b) to those receiving pensions payments by the local government pension scheme in each of the last five years. (229352)

Details of how much has been paid into the Local Government Pension Scheme by both employees and employers, as well how much has been paid to those receiving pensions payments, in each of the last five years, can be found on the Communities and Local Government website at:

http://www.local.communities.gov.uk/finance/stats/pensions.htm.

To ask the Secretary of State for Communities and Local Government what estimate she has made of the annual change in the cost to the public purse of the 2006 changes to (a) the local government pension scheme and (b) the firefighters’ pension scheme; and if she will make a statement. (229490)

Reforms to the Local Government Pension Scheme in England and Wales took effect from 1 April 2008 based on benchmark costs provided by the Government Actuary’s Department and agreed with key stakeholders, within a total cost envelope of 19.5 per cent. of total pensionable payroll. The net assumed annual savings arising from the reforms in respect of future accrual of pension rights is estimated at some 1.3 per cent. of pensionable payroll, which was estimated to be some £30 billion for the year 2007-08.

For the firefighters’ pension schemes, reforms to their ill health pension arrangements have resulted in current savings of an estimated 2 per cent. of pensionable pay. The introduction of the New Firefighters’ Pension Scheme for all new entrants from April 2006 achieves a further 0.6 per cent. of estimated current savings, together with longer term savings from a reduction in employers’ contributions from 26.5 per cent. to 14.2 per cent. of pensionable pay.