Written question asked by Lord Hammond of Runnymede (Conservative) on Monday, 12 January 2009, in the House of Commons. It was due for an answer on Wednesday, 14 January 2009. It was answered by Yvette Cooper (Labour) on Thursday, 2 April 2009 on behalf of the Treasury.

Public Sector: Pensions

Question: To ask the Chancellor of the Exchequer how much of the projected expenditure on public sector pensions shown in table 4.1 of the Long-term Public Finance Report he expects will be financed from employee contributions.

Answer: As with all defined benefit pension schemes, regular actuarial valuations ensure that employees and employers pay a contribution rate appropriate to the level of expected benefits. Following Government reforms, major schemes have capped the employer contributions which will control taxpayers exposure to future cost pressures. In terms of financing the current pensions in payment, as with all Pay-As-You-Go schemes, current employee contributions are used to finance these pensions. The assumptions used in producing table 4.1 will be published in due course.

Secondary information

Type: Written question
Reference: 490 c1390W;490 c1386W; 247951
Session: 2008-09
Related items: Public Sector: Pensions
Wednesday, 17 June 2009
Written questions
House of Commons
Subjects: Pensions Public sector
Link: View this Written question on www.publications.parliament.uk