Written question asked by Lord Laird (Ulster Unionist Party), in the House of Lords. It was answered by Lord Sassoon (Conservative) on Monday, 30 April 2012.

Pensions

Question: To ask Her Majesty's Government, further to the Written Answer by Lord Sassoon on 27 March (WA 241–42), how the revaluation of the Fire Pension Scheme using average weekly earnings differs from revaluation using the Consumer Prices Index (CPI); and why the NHS Pension Scheme and Teachers Pension Scheme are being revalued at a rate of CPI plus 1.5% and CPI plus 1.6% respectively.

Answer: The differences between the public service pension scheme designs set out in the Command Paper Public Service Pensions: Good Pensions That Last (Cm 8214) and those more recently set out in heads of agreement with trades unions reflect individual negotiations with the relevant trades unions. However, those differences have been constrained to keep within the overall cost limits set out in Cm 8214. For example, compared with the Government's preferred design, a different revaluation rate has been offset by a different accrual rate so there should be no overall increase in cost to the taxpayer. Full details of the how the revaluation rates based on the consumer prices index or average weekly earnings index will apply in practice will be set out in due course in detailed proposals for the operation of the individual schemes and will be reflected in legislation.

Secondary information

Type: Written question
Reference: 16937; 736 c419WA
Session: 2010-12
Related items: Pensions
Tuesday, 27 March 2012
Written questions
House of Lords
Subjects: Fire and rescue services NHS Workplace pensions Teachers Uprating
Link: View this Written question on www.publications.parliament.uk