Annex A

Annex A

Nick Leaton

c/o whatdotheyknow.com

Dear Mr Leaton

Thank you for your Freedom of Information request received on 7 December 2009. I am sorry for the delay in responding. You asked for:-

1. What is the present value as of this year (2009) of current liabilities of the state second pension calculated using a discount rate of zero.

2. What is the present value as of this year (2009) of the same liabilities calculated using the DWP's preferred discount rate.

3. The discount rate chosen by the DWP.

4. Any papers or internal documents justifying the DWP's choice of discount rates.

I have established that we do not hold the information requested, as government expenditure is not planned and accounted for in such a way, and therefore the requested figures have not been calculated. Projections of state pensions spending over the next 50 years have been published regularly as part of HM Treasury's Long-term Public Finance Report, the Government Actuary's Quinquennial Review of the National Insurance Fund, and many other pensions-related publications, and also on the DWP website.

As we do not account for spending in such a way, we have not had to make decisions about our preferred discount rate. In accordance with government accounting practices, where it is necessary to use a discount rate, we follow HM Treasury guidance on the appropriate discount rate to use.

If you have any queries about this letter please contact me quoting the reference number above.

Yours sincerely,

DWP Central FoI Team

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Your right to complain under the Freedom of Information Act

If you are not happy with this response you may request an internal review by e-mailing [DWP request email] or by writing to DWP, Central FoI Team, 5th Floor The Adelphi, 1-11, John Adam Street, London WC2N 6HT. Any review request should be submitted within two months of the date of this letter.

If you are not content with the outcome of the internal review you may apply directly to the Information Commissioner's Office for a decision. Generally the Commissioner cannot make a decision unless you have exhausted our own complaints procedure. The Information Commissioner can be contacted at: The Information Commissioner's Office, Wycliffe House, Water Lane, Wilmslow Cheshire SK9 5AF www.ico.gov.uk

DWP Central Freedom of Information Team

e-mail: [DWP request email]

Our Ref: FoI 2518

20 January 2010