Skip to main content

Public Sector: Pensions

Volume 502: debated on Monday 14 December 2009

To ask the Chancellor of the Exchequer (1) if he will estimate the net annual saving to the Exchequer of capping at £50,000 per annum the benefit payable under all currently accruing defined benefit public sector pension schemes not yet in payment which are estimated to provide a benefit of less than £50,000 annually; and what amendments to public sector pension rules would be required to give effect to such a change; (304915)

(2) if he will estimate the net annual saving to the Exchequer of capping at £50,000 per annum the benefit from all future public sector defined benefit pensions funded from the public purse; and what amendments to public sector pension rules would be required to give effect to such a change;

(3) if he will estimate the net annual saving to the Exchequer of ceasing increases in funding from the public purse to defined benefit public sector pensions not yet in payment which are worth over £50,000 annually; and what amendments to public sector pension rules would be required to give effect to such a change.

The savings from a cap on pensions in payment would take a number of years to accrue as only future pension rights could legally be capped. Data are not centrally available to estimate annual savings to the Exchequer on such future pension rights.