Principal Civil Service Pensions Scheme

Lord Maude of Horsham Excerpts

Monday 26th March 2012 Written Statements

[The Minister for the Cabinet Office and Paymaster General (Mr Francis Maude)]

At the spending review 2010 the Government announced increases to member contribution rates in public service pension schemes saving £2.8 billion a year by 2014-15, to be phased in from April 2012. The contributions are to be increased progressively with protection for the low paid, to minimise the potential for members to opt out of the scheme.

Last year the Cabinet Office consulted on a structure of tiered contribution rates that meet the requirements. The consultation opened on 28 July 2011 and closed on 20 October 2011, and over 3,400 responses were received. These regulations bring the increased contribution rates into force, which will apply to service from 1 April 2012 and continue throughout the financial year. The Government remain committed to securing in full the spending review savings in 2013-14 and 2014-15 from further increases to member contributions in public service pension schemes, and will consult formally on implementation in due course.

Copies of the amendment scheme have been laid before the House.