Vol. 259 No. 8
asked the Minister for Transport and Power if he will state the average increases in the pensions of retired CIE employees from 1960 to 1970 and compare the percentage increases with increases in the consumer price index; and if he will make a statement on the matter.
25.
asked the Minister for Transport and Power if he will state in relation to each pension scheme operated by CIE (1) the amount of moneys in each fund at the beginning of each operating year from 1960 to 1970; (2) the basis of calculating the pension of retired employees; and (3) the basic increases in the pension rates for each year since 1960 to 1971; and if he will make a statement on the matter.
With your permission, a Cheann Comhairle, I propose to take Questions Nos. 24 and 25 together. As the reply is in the form of a tabular statement I propose to circulate it with the Official Report.
I understand that the unions concerned are at present negotiating with CIE for further improvements in the existing superannuation schemes. The initiative in submitting amendments to such schemes rests, under statute, with the board of CIE.
Following is the statement:
|
1. Amount of moneys in each fund: |
1960 |
1961 |
1962 |
1963 |
1964 |
1965 |
1966 |
1967 |
1968 |
1969 |
1970 |
|
Salaried Officers & Clerks (GSR) Superannuation Scheme |
1,321,858 |
1,364,579 |
1,454,981 |
1,568,056 |
1,639,226 |
1,631,641 |
1,565,743 |
1,495,233 |
1,393,956 |
1,292,719 |
1,188,463 |
|
CIE Superannuation Scheme, 1951 |
1,089,027 |
1,270,832 |
1,500,842 |
1,794,762 |
2,117,127 |
2,454,834 |
2,844,149 |
3,218,939 |
3,660,414 |
4,141,652 |
4,721,523 |
|
*Pension Scheme for Regular Wages Staff |
2,769,324 |
2,995,091 |
3,199,516 |
3,428,994 |
3,794,436 |
4,060,028 |
4,583,559 |
5,090,208 |
5,571,947 |
6,049,397 |
6,542,193 |
|
Railway Clearing System Superannuation Fund |
Particulars not available—London based Fund. |
*Note: Though there are several wages grade superannuation schemes, the funds thereof are treated as one for accountancy purposes. There is an actuarial deficit of £3,067,000 on the Funds of the Wages Grades schemes.
|
2. Basis of calculating the pension of retired employees: |
||
|
Salaried Officers & Clerks (GSR) Superannuation Scheme |
Pensioners receive benefits determined by length of service subject to a minium of half retiring pay for full service. |
|
|
Railway Clearing System Superannuation Fund |
||
|
CIE Superannuation Scheme, 1951 |
Pensioners receive 1/60th of retiring salary for each year of service subject to a maximum of two-third of retiring salary. |
|
|
Pre-April, 1963 |
Males £1.68 per week for life or £2.58 per week for 5 years thereafter £1 Females 65p per week for life or 90p for 5 years thereafter 50p. |
These pensioners also receive Social Welfare benefits. |
|
Post-April, 1963 Wages Wages Grades employees |
Pensioners in this category may, prior to retirement, choose either of two rates of pension each related to retiring pay. The first option gives a pension of between £2.50 and £5.00 per week for life and the second option gives a pension of between £2.92 and £5.42 per week reducing after 5 years (at age 70) to a pension of between £2.17 and £4.67 per week for life there after. These pensions are payable in addition to normal Social Welfare benefits. |
|
3. Basic increase in CIE pensions: |
||
|
(i) Salaried Officers and Clerks (GSR) Superannuation Scheme |
1960 |
5% (minimum £25) |
|
(ii) CIE Superannuation Scheme, 1951 |
1963 |
Range 10% to 6% (minimum £20) |
|
1964 |
Range 10% to 5% (minimum £20) |
|
|
1965 |
9% (minimum £25) |
|
|
(iii) Railway Clearing System Superannuation Fund |
1967 |
12% (minimum £25) |
|
1968 |
5% (minimum £20) |
|
|
1969 |
Based on salaries on 21/1/1964 Max. £200 |
|
|
1970 |
,, ,, ,, ,, 16/7/1968 Max. one-third |
|
|
1971 |
,, ,, ,, ,, 15/7/1969 Max. one-third |
|
|
(iv) Pension Scheme for Regular Wages Staff (Pre-April, 1963 Wages Grade Pensioners) |
1964 |
Range 12½p to 70p |
|
1968 |
25p |
|
|
1969 |
50p |
|
|
(v) Pension Scheme for Regular Wages Staff (post-April, 1963 Wages Grade Pensioners) |
There is no provision for increases in the CIE pensions of the post-April, 1963 Wages Grade pensioners. Both pre-April, 1963 and post-April, 1963 wages Grade pensioners are eligible for the normal Social Welfare benefits. These benefits have increase as follows in the period 1960-1971: |
|
Contributory Old Age Pension |
Unemployment Benefit (Retirement Pension) |
||||||
|
Year |
Married |
Increase |
Year |
Married |
Increase |
||
|
1960 |
— |
— |
1960 |
£2.25 |
— |
||
|
1961 |
£3.50 |
— |
1961 |
£2.62½ |
37½p |
||
|
1962 |
£3.50 |
— |
1962 |
£2.62½ |
— |
||
|
1963 |
£4.00 |
50p |
1963 |
£3.12½ |
50p |
||
|
1964 |
£4.37½ |
37½p |
1964 |
£3.62½ |
50p |
||
|
1965 |
£4.37½ |
— |
1965 |
£3.62½ |
— |
||
|
1966 |
£5.37½ |
£1.00 |
1966 |
£4.62½ |
£1.00 |
||
|
1967 |
£5.37½ |
— |
1967 |
£4.62½ |
— |
||
|
1968 |
£5.87½ |
50p |
1968 |
£5.12½ |
50p |
||
|
1969 |
£6.62½ |
75p |
1969 |
£5.87½ |
75p |
||
|
1970 |
£8.50 |
£1.87½ |
1970 |
£7.65 |
£1.77½ |
||
|
1971 |
£9.35 |
85p |
1971 |
£8.40 |
75p |
Average Increase in CIE Pensions (1960-1971) (Salaried Staff Pensioner) and Comparison with Percentage Increase in the Consumer Price Index
|
Year |
Pension |
Consumer Price Index |
Percentage Increase in CPI |
Percentage Increase in Pension |
|
1960 |
£323 p.a. |
118.1 |
100.0% |
100.0 |
|
1961 |
£323 p.a. |
121.1 |
102.0% |
100.0 |
|
1962 |
£323 p.a. |
125.6 |
106.4% |
100.0 |
|
1963 |
£323 p.a. |
131.2 |
111.1% |
100.0 |
|
1964 |
£345 p.a. |
140.3 |
118.8% |
106.2 |
|
1965 |
£374 p.a. |
144.8 |
122.6% |
115.8 |
|
1966 |
£374 p.a. |
150.4 |
127.3% |
115.8 |
|
1967 |
£419 p.a. |
154.3 |
130.7% |
129.7 |
|
1968 |
£440 p.a. |
162.7 |
137.7% |
136.2 |
|
1969 |
£502 p.a. |
175.1 |
148.3% |
155.4 |
|
1970 |
£642 p.a. |
192.6 |
163.1% |
198.8 |
Average Increase in CIE Pensions 1960-1971 (Wages Grade Pensioners) and Comparison with Percentage Increase in the Consumer Price Index
|
Year |
Pension |
Consumer Price Index |
CPI to base 1960=100 |
*Pension to base 1960=100 |
|
1960 |
£4.81 p.w. |
118.1 |
100.0% |
100% |
|
1961 |
£5.18½ p.w. |
121.1 |
102.5% |
107.8% |
|
1962 |
£5.18½ p.w. |
125.6 |
106.4% |
107.8% |
|
1963 |
£5.68½ p.w. |
131.2 |
111.1% |
118.2% |
|
1964 |
£6.18½ p.w. |
140.3 |
118.8% |
128.6% |
|
1965 |
£5.50 p.w. |
144.8 |
122.6% |
114.3% |
|
1966 |
£6.50 p.w. |
150.4 |
127.3% |
135.1% |
|
1967 |
£6.50 p.w. |
154.3 |
130.7% |
135.1% |
|
1968 |
£7.25 p.w. |
162.7 |
137.7% |
150.7% |
|
1969 |
£8.00 p.w. |
175.1 |
148.3% |
166.3% |
|
1970 |
£10.37½p.w. |
192.6 |
163.1% |
214.0% |
*Includes Social Welfare benefits.
26.
asked the Minister for Transport and Power if, in respect of the regular wages staff superannuation scheme of CIE, he will state the balance in this fund for each of the past five years; if any proposals are on hand to review and improve the basis of calculating the pensions of current employees; and if there are any proposals to review the pension levels of retired employees.
Part of the reply is in the form of a tabular statement which, with your permission, a Cheann Comhairle, I propose to circulate with the Official Report. I understand that the unions are in negotiation with CIE about proposals for improvements in the superannuation scheme for serving wages grade staff but that agreement has not yet been reached. There are no proposals to review the pension levels of retired employees. I would like to point out that the CIE wages grade pensions were designed to supplement the social welfare benefits and these benefits have been increased considerably in recent years. The minimum income of a married pensioner who retired since April, 1963, is now £10.90 a week.
Following is the statement:
Balance in CIE wages grades superannuation fund for
|
1970 |
£7,108,364 |
|
1969 |
£6,542,193 |
|
1968 |
£6,049,397 |
|
1967 |
£5,571,947 |
|
1966 |
£5,090,208 |
Note: CIE accounts for 1971 are not yet available.
