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Superannuation Bill

Part of Freedom of Information (Amendment) – in the House of Commons at 5:13 pm on 7th September 2010.

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Photo of Michael McCann Michael McCann Labour, East Kilbride, Strathaven and Lesmahagow 5:13 pm, 7th September 2010

The Minister has said several times that he aims to protect the lower-paid, but I do not follow his argument. Under the current arrangements, someone who is earning £20,000 a year with 20 years' service in the civil service would receive £60,000 in compensation. Under the February 2010 deal, proposed by the Labour Government, that individual would have received £58,000 in compensation. Under the present proposals, that civil servant would receive £20,000 compensation. Conversely, someone who is higher paid-for example, £40,000 a year-would receive £120,000 compensation under the current arrangements, given that three years is the maximum payment. Under the February 2010 deal, that amount would have been £60,000 because that was the cap, and under the present proposals it would be £40,000. Can the Minister please explain how the lower-paid will be protected?

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