Public Service Pensions

Tom Blenkinsop Excerpts

Tuesday 20th December 2011 Commons Chamber

[Danny Alexander]

I am very grateful to my hon. Friend for that comment. Over the last few months, I have sometimes felt less like a Chief Secretary than a chief negotiator. I certainly think that, in this as in every other aspect of our policy, the Government as a whole have indeed put the national interest first.

[Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)]

Will the Chief Secretary specify the actuarial reductions involved in all four pension schemes? Have they changed? What will the consequences be for shift-working public sector employees, whose life expectancy does not generally match the national average, if they opt out of schemes?

[Danny Alexander]

The actuarial factors have not changed. Early retirement pensions will still be calculated on an actuarially fair basis, although of course that in itself changes over time according to the actuarial assumptions. The only exception is the teachers’ scheme. There has been discussion about modest enhancements to early retirement factors at the cost of the accrual rate for retirement ages over 65, as and when the state pension age exceeds 65. The teaching unions made that a priority in their negotiations, and we have chosen to agree with them.