Written question asked by Lord Laird (Ulster Unionist Party), in the House of Lords. It was answered by Baroness Hanham (Conservative) on Monday, 23 April 2012.

Pensions

Question: To ask Her Majesty's Government, further to the Written Answer by Baroness Hanham on 19 March (WA 144), why, if their policy is to use the consumer prices index instead of the retail prices index as the preferred measure of prices, they have decided to revalue certain public sector superannuation scheme benefits using the retail prices index.

Answer: The Firefighters' Pension Scheme 1992 and the New Firefighters' Pension Scheme 2006 in England provide for certain benefits to be uprated in line with the retail prices index. These are those benefits associated with additional pension benefit earned under continued professional development and the long service increment. The schemes provide for these to be uprated in line with retail prices index during an active member's accrual phase but once in payment or deferred these benefits are uprated in line with pensions increase, which is currently the consumer prices index. On 26 October 2011, a consultation on a proposed suite of amendments to the two firefighters' pension schemes closed. Among other proposed changes, this contained provisions to amend the uprating of additional pension benefits in the schemes during a member's active accrual phase to be in accordance with the Pensions (Increase) Act 1971. The department will respond to the outcome of this consultation shortly.

Secondary information

Type: Written question
Reference: 16656; 736 c363WA
Session: 2010-12
Related items: Pensions
Monday, 19 March 2012
Written questions
House of Lords
Subjects: Fire and rescue services Workplace pensions Uprating Retail prices index
Link: View this Written question on www.publications.parliament.uk