asked the Minister for the Environment if he will set out the principal features of the Local Government superannuation scheme, under the following headings, assuming a retiring pay of £44, and 40 years service: (i) the gratuity unit per year and maximum gratuity; (ii) the service pension, unit per year and maximum pension; (iii) gratuity payable at five years and at ten years; (iv) the service pension payable at five years and ten years; (v) the maximum provision for added service in respect of premature retirement due to ill health; (vi) contributions for service pension; (vii) provisions for widows' pension; (viii) contribution for widows' pension; and (ix) other significant features.
Written Answers. - Local Government Superannuation Scheme.
542.
It is assumed that the information requested relates to the superannuation conditions of local authority servants as revised with effect from 27th May, 1977, arising out of the interim report of the Working Party on Local Authority Superannuation. The report is applicable to servants becoming pensionable on or after 1st June, 1978, and to existing pensionable servants with effect from 27th May, 1977, or the date of becoming pensionable, if later, on the basis of individual options to be exercised by them. It is assumed, also, that the reference in the question to gratuity is a reference to the lump sum payable on retirement.
The requested information is as follows:
(i) £85.80 for each year of pensionable service—maximum £3,432;
(ii) (a) in respect of service before 27th May, 1977, £28.60 for each year of pensionable service—maximum £1,144;
(b) in respect of service on or after 27th May, 1977 £9.62 for each year of pensionable service—maximum £384.80;
(iii) £429; £858;
(iv) (a) in respect of service before 27th May, 1977: 5 years—£2.75 per week, 10 years —£5.50 per week;
(b) in respect of service from 27th May, 1977: 5 years—£0.925 per week; 10 years—£1.85 per week;
(v) —a servant with not less than five and not less than ten years of actual pensionable service may be allowed an equivalent amount of added service, the amount added not to be such as to make the service of the servant greater than it would be if he were to continue in employment to age 65;
—a servant with more than ten years and not more than 20 years of actual pensionable service may be allowed the more favourable of:
(a) an amount of added years equal to the different between his actual pensionable service and 20 years—the amount added not to be such as to make his service greater than it would be if he were to continue in employment to age 65;
(b) six and two-third years— the amount added not to be such as to make his service greater than it would be if he were to continue in employment to age 60;
—a servant with more than 20 years of actual pensionable service may be allowed six and two-third years, the amount added not to be such as to make his service greater than it would be if he were to continue in employment to age 60;
(vi) (a) in respect of service before 27th May, 1977, £1.76 per week;
(b) in respect of service from 27th May, 1977, £0.52 per week;
(vii) if a servant elects to have the revised superannuation conditions applied to him he may participate in a contributory widows' and orphans' pension scheme on an optional basis;
(viii) periodic contributions in respect of the scheme referred to at (vii) would be 1½ per cent of the amount by which the servant's weekly pay exceeds twice the maximum personal weekly rate of old age, contributory pension payable to a man with no adult dependent or qualified children. There would also be provision for deduction from lump sum or death gratuity in respect of years of service which were taken into account in the calculation of the widows' and orphans' pension and for which periodic contributions were not paid;
(ix) other significant features of the revised scheme are that a death gratuity, in the case of death in service of a pensionable employee would amount to a minimum of a year's pay and a maximum of one and a half times a year's pay depending on service; and that superannuation benefits would be preserved and become payable at age 60 in the case of voluntary retirement after not less than five years' pensionable service.
Note: In regard to (ii), (iv) and (vi) above, the reduced amounts of service pensions and contributions in respect of service on or after the 27th May, 1977 arise from the application to such service of arrangements for co-ordination with Social Welfare benefits, as recommended in the interim report of the Working Party on Local Authority Superannuation.