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Committee publication · Estimate memoranda · 29 April 2026

Foreign, Commonwealth & Development Office Overseas Superannuation Main Estimate Memorandum 2026-27

From: Foreign Affairs Committee

Summary

This memorandum details the Foreign, Commonwealth & Development Office's budget request for overseas superannuation pension schemes in 2026-27. The schemes provide unfunded defined-benefit pensions to former colonial public servants. Resource AME of £11.1m and Net Cash Requirement of £31.5m are sought, both declining year-on-year as the pensioner population decreases.

Key findings

  • Resource AME sought is £11.1m (down £0.5m, -4.3% from 2025-26), primarily interest costs on pension liabilities
  • Net Cash Requirement is £31.5m (down £6.7m, -17.5% from 2025-26) to cover pension payments to 6,290 pensioners
  • Spending subject to Resource Annually Managed Expenditure (AME) controls, not pre-set Departmental Expenditure Limits, due to factors outside administrators' control
  • Contingent liabilities total £250.02m: £234.77m for Supplementary Pension for Overseas Service and £15.25m for Hong Kong Overseas Public Servants Act Sterling Safeguard Scheme
  • Administration costs forecast at £0.6m in 2025-26; downward spending trend projected to continue through 2029-30

Tone

Procedural

Topics

public-financepensionsoverseas-administration

Key actors

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

Notable line

“Payments to entitled pensioners and their dependants are fully financed by the Exchequer.”

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 & Development Office · defining the scope of the schemes
“The Resource AME sought in this Estimate is primarily the interest cost arising during the year.”
— Foreign, Commonwealth & Development Office · explaining the main expenditure component
“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 & Development Office · explaining downward spending trajectory
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Source · parliament.uk record ↗