The Government Annuity Tables Order 1973

Article 5

SCHEDULE 2 Rules observed in making the variations specified in article 3 and framing the new tables set out in Schedule 1

Table C.202 set out in Schedule 2 to the Government Annuity Table Order 1968 has been varied so that, instead of applying when the average price of £100 2½ per cent. Consolidated Stock is £30 or between £30 and £30.25, it applies when the average price is £29⅞ or between £29⅞ and £30¼. Table C.201 has been varied so that, instead of applying whenever the average price is under £30, it applies only when the average price is £29⅜ or between £29⅜ and £29⅞, thereby enabling new tables to be added to cover price ranges below £29⅜, all of which were previously covered by Table C.201.

The tables set out in Schedule 1 to this Order are based on an investigation into the mortality of government annuitants which is described in detail in a report by the Government Actuary and the Actuary to the National Debt Commissioners dated 24th May 1954 and published as a Stationery Office publication. The investigation showed not only that the mortality of government annuitants at that time was considerably lighter than that experienced in the period 1900-1920 on which the tables hitherto in use were based but also that the allowance made in those tables for a prospective further decline in mortality was no longer adequate. The same additions to the net annuity values have been made in constructing the new tables as were made when the existing tables were constructed in 1954 and 1955 in order to secure that the grant of annuities under them did not cause any loss to the Exchequer. The new tables incorporate also an addition of £1.80 per cent. of the net annuity value to provide for the expenses which would be incurred by the National Debt Commissioners in connection with the grant and payment of each annuity if the Commissioners were to continue to grant annuities.