Alex Cunningham – 2016 Parliamentary Question to the Cabinet Office

The below Parliamentary question was asked by Alex Cunningham on 2016-02-05.

To ask the Minister for the Cabinet Office, pursuant to the Answer of 28 January 2016 to Question 23778, on civil servants: pensions, and with reference to his letter to the hon. Member for Stockton North of 7 January 2016, for what reason a deduction was made from the refund on the Principal Civil Service Pension of the constituent referred to in that letter.

Matthew Hancock

Like other occupational pension schemes, the Principal Civil Service Pension Scheme (PCSPS) is required by law to provide a widow’s pension, in respect of service from 6 April 1978, whenever a member dies and leaves an eligible widow – irrespective of when that marriage took place. To cover the risk of the scheme having to pay a widow’s pension in respect of a marriage that took place after a member leaves service, a non-refundable insurance-type premium is deducted from the refund of members of the classic section of the PCSPS who remain single throughout service. This premium is a type of group insurance against the specific risk of a member dying and leaving an eligible widow/widower.