Water Industry (Pensions)
§ Mr. Pendry
To ask the Secretary of State for the Environment what steps will be taken to ensure that the quality of the pension schemes currently enjoyed by water industry employees is maintained following privatisation.
§ Mr. Moynihan
The Government have made clear that the existing accrued pension rights of current employees of the water authorities, and of pensioners, and deferred pensioners will not be affected by privatisation. We have also said that, following privatisation, existing employees will have the right to remain in a pension scheme with the same benefits, and requiring the same contributions, as the local government superannuation scheme, of which they are members. Any provisions necessary to secure this position will be included in the legislation to privatise the water authorities.