Public Service Pensions

Sarah Newton Excerpts

Wednesday 2nd November 2011 Commons Chamber

[Danny Alexander]

As the hon. Gentleman should know, in unfunded schemes there is no such thing as a pension pot. The money is not gathered together and invested. The contributions made today do not in any way meet the costs of the pensions being paid out today. What we are offering is what might be called a new deal for public service pensions, whereby additional contributions and longer working will help to ensure that public sector workers can still have the best pensions available. Many low-income workers will actually receive better pensions in retirement.

[Sarah Newton (Truro and Falmouth) (Con)]

I welcome the statement, because I think it demonstrates that the Government are listening to the concerns expressed by nurses, teachers and firefighters in my constituency. During the scheme-by-scheme discussions, will the Chief Secretary bear in mind those with physically demanding jobs, such as firefighters? Will they retain the right to retire before reaching the state pension age, while still benefiting from their pensions?

[Danny Alexander]

That is a very good question. We are, of course, listening carefully to representations. As I have said, we have delayed setting a cost ceiling for the firefighters’ pension scheme, particularly in the light of some of the issues that my hon. Friend has mentioned, but what we are discussing now is the normal pension age for schemes; early retirement arrangements on an actuarily reduced basis will remain in place.