Civil Servants: Pensions

Cabinet Office written question – answered at on 26 April 2011.

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Photo of Angela Eagle Angela Eagle Shadow Chief Secretary to the Treasury

To ask the Minister for the Cabinet Office

(1) whether he has carried out an impact assessment of the proposed changes to the Principal Civil Service Pension Scheme; and what estimate he has made of the effect on the opt-out rate from the scheme of implementing such changes;

(2) what arrangements are in place to ensure that the changes to the Principal Civil Service Pension Scheme are sustainable and progressive;

(3) what assessment he has made of the effects of the proposed changes to the Principal Civil Service Pension Scheme on part-time members of staff who are members of the scheme.

Photo of Francis Maude Francis Maude The Paymaster General and Minister for the Cabinet Office

At the Spending Review the Government announced changes to the level of employee contribution rates which would lead to total savings of £2.8 billion a year by 2014-15, to be phased in from April 2012. Discussions about how this will be implemented are ongoing with unions in the context of wider ranging pension discussions. The Government will put forward proposals in the summer, and will then begin formal consultation on the necessary changes to scheme regulations. Assessing the likely impact of the changes to part-time staff will be part of this consultation process.

The Government are committed to protecting low earners and ensuring changes are both sustainable and progressive.

The Treasury published an estimate of likely opt-out rates at the Spending Review:

http://cdn.hm-treasury.gov.uk/sr2010_policycostings.pdf

This estimate has been scrutinised by the independent Office for Budget Responsibility, and will be reviewed when the Government puts forward final designs.

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