Occupational Pensions: Survivor Benefits

Lord Bradley Excerpts

Monday 13th July 2015 Lords Chamber

[Baroness Altmann]

My Lords, the Government are absolutely committed to equality, and all accruals from now are on an absolutely equal basis. However, past funding of pension schemes would not have built in the cost estimates for equality. That is why we have to be careful and consider the issue most carefully before imposing a cost of £3.3 billion on these pension schemes. The cost for public sector pension schemes would be £2.9 billion, which has not been funded, and the cost for private sector schemes would be £400 million, which has also not been funded. Finding that kind of money when employers are already struggling is not straightforward.

[Lord Bradley (Lab)]

My Lords, the Minister said in the Sunday Times last November:

“There has been so much unfairness in pensions over the years. Sadly, this is another unfairness, and should not be permitted these days”.

In the light of that, are the Government going to bring forward proposals quickly to match those words? What provision have they now made to meet the costs of addressing restrictions on survivor benefit payments if that decision is lifted?

[Baroness Altmann]

The current treatment has been challenged in the courts and been found to be lawful. If the Government had a ready source of funding, the issue would have been dealt with by now. These issues are complex and are still being considered. We will issue our response in due course.