CONFIDENTIAL
SUB-COMPONENT: HMG TO UNDERWRITE NON-COMMUTABLE ELEMENT
HMG to under-write only non-commutable element of pensions, paying supplements in respect of these as under Options A, B, C and D above.
POTENTIAL COST:
Would depend on number of officers opting for new or old pension schemes (ie 25% or 50% commutable) and on trigger-point chosen in respect of Options A and B. In the best case the potential cost could be a little more than 50% of potential costs under Options A, B, C and D.
Advantages:
(a) Reduced contingent liability
(b) Could complement private sector schemes if developed
Disadvantages:
(a)
Illogical to protect only a proportion of an officer's pension benefits, unless a private sector scheme could protect the commutable element.
options.1.
SLM
CONFIDENTIAL
8
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