In the Civil Service, for which I have direct responsibility, as in the public service generally, superannuation schemes are generally financed on a pay as you go basis and accordingly there is no fund and, hence, there are no employer contributions as such. The normal practice is that the moneys for paying the relevant pensioners are provided for each year in voted moneys, in the case of civil servants, the Vote for Superannuation and Retired Allowances.
As regards contributions, financing and funding in the wider public sector, including the commercial State-sponsored bodies, I am aware that a variety of arrangements apply. These are a matter in the first instance for the individual bodies concerned. As regards pension increases in the civil and public service, the position is that, prior to 1969, pensions in payment were increased from time to time on an ad hoc basis. In the 1969 budget, the Minister for Finance announced his decision in principle to adopt pay parity and to move towards it over a number of years. In the 1984 budget, full parity, that is revision of pensions from the same date as the relevant pay increases, was introduced for general pay increases. In the 1986 budget, full parity was introduced for grade and special pay increases. In the wider public sector pension increases are a matter in the first instance for the authority directly controlling the pension scheme in question.
