Committee publication · Estimate memoranda · 29 April 2026

Main Estimate 2026-27 - Estimates Memorandum for Foreign, Commonwealth and Development Office: Overseas Superannuation

From: International Development Committee

Summary

This Estimate memorandum details UK government spending on overseas superannuation pension schemes covering former colonial public servants. The Foreign, Commonwealth and Development Office seeks £11.1m in Resource AME and £31.5m in Net Cash Requirement for 2026-27, both decreasing from prior year as pension liabilities and pensioner numbers decline.

Key findings

Resource AME sought is £11.1m (down £0.5m or 4.3% from 2025-26), primarily interest costs on discounted pension liabilities
Net Cash Requirement of £31.5m (down £6.7m or 17.5% from 2025-26) covers estimated pension payments to beneficiaries
Spending controlled via Resource AME category rather than DEL limits due to factors outside administrators' control: mortality rates, membership numbers, age profiles
Scheme liabilities valued at £635m as of 31 March 2022 with 6,290 pensioners; next full valuation scheduled for 31 March 2026
Contingent liabilities total £250.02m: £234.77m for Supplementary Pension for Overseas Service (SPOS) and £15.25m for Hong Kong Overseas Public Servants Act 1996 scheme

Tone

Procedural

Topics

public-financepensionsoverseas-aidcolonial-legacy

Key actors

Foreign, Commonwealth and Development Office, Nick Dyer, HM Treasury, House of Commons Scrutiny Unit

Notable line

“The overseas superannuation pension schemes cover the payments of pensions and grants under various unfunded defined benefit schemes relating …”

Key Quotes

“The overseas superannuation pension schemes cover the payments of pensions and grants under various unfunded defined benefit schemes relating to service overseas by former colonial public servants.”
— Foreign, Commonwealth and Development Office · describing scheme objectives

“… net expenditure and cash payments are largely outside the control of the schemes ' administrators on a day-to-day basis, instead being affected by factors such as membership numbers; mortality rates; the age profile of members, and annual pension increases.”
— Foreign, Commonwealth and Development Office · explaining AME classification rationale

“The provision sought under Resource AME is lower than last year due to an annual decrease in the opening pension liability which will be a continuing trend year on year as the pension schemes get smaller.”
— Foreign, Commonwealth and Development Office · explaining spending reductions

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Source · parliament.uk record ↗