1)                             b

2)                            Cost can be seen, is affected by investment income, potentially increases council tax, employers can reduce contributions or take pension ‘holidays’ – but this builds up a problem for the future.

3)        2,250,000

4)        Local Government, police, fire & rescue, meat hygiene service, higher and further   education, probation, Environment agency, Passenger Transport Executives, some private companies and some voluntary sector organisations.

5)        b – people have the opportunity to convert their lump sum into pension, and this includes that conversion.

6)        a & f – possibly also b & d because of clustering in lower paid jobs and breaks in service.

7)        d, b, c, a

8)        a

9)        c

10)      75%

11)      £3,800

12)      £1,600

13)      Below – pension credit level is £5720 for singles, £8684 for couples

14)      a) They chose

            b)  6% of salary

15)      a & b

16)      Abolish the rule of 85 for all service from April 2006.

No protection for anyone so even if you are 59 in 2006 and retire at 60 you would suffer a reduction on pension earned in your last year of service.

Increase in employee contribution by 1% for two years so everyone would pay 7% (those manual grade protection would pay 6%).

Increase minimum age to draw pension from age 50 to 55 (earlier than required for new starters).