asked the Minister for Finance if an actuarial estimate has been made by him of the likely cost of public service pensions over each of the next 30 years; the present cost of such pensions; if he expects this cost to fall or rise over the next 30 years; and if so, the amounts by which it is expected to do so.
Written Answers. - Public Service Pensions.
37.
While an estimate on the particular basis referred to in the question is not available, an assessment has been made of the public expenditure implications of unfunded public service pension liabilities. This indicated that the pension liabilities over the next 30 years were not of a magnitude which would warrant special Exchequer funding. The present (1987) cost of public service pensions is estimated at £191 million.
The recently announced voluntary redundancy measures to apply in the public service will naturally lead to an increase in pension costs. It is not possible to give an estimate of this increase as particulars (age, length of service etc.) of those availing of the voluntary redundancy terms are not yet available. The increase in pension costs arising from the reduction in staff numbers will, of course, be more than offset by savings in pay.