HC Deb 28 November 1966 vol 737 cc2-3
2 and 3. Mr. Patrick Jenkin

asked the Minister of Social Security (1) whether she will amend the rules covering entitlement to retirement pension increments so that, where a person defers retirement beyond minimum pension age, the increment will be based on the contributions paid in the five years immediately before retirement rather than on those paid in the five years following minimum pension age;

(2) approximately how many people who have deferred retirement for more than five years beyond minimum pension age and who, though still earning, become entitled in any year to claim a retirement pension, fail to claim; what steps are taken by her Department to draw the attention of such people to the need to claim their pensions; and by how much the National Insurance Fund benefits in each year by reason of such failure to claim benefits.

Miss Herbison

My Department identifies insured persons approaching age 70 (men) or 65 (women) who have not claimed their retirement pension and invites them to make a claim, but I regret that the information requested about the numbers who fail to claim and about savings to the National Insurance Fund is not available. I do not consider that a change on the lines suggested by the hon. Gentleman in the provisions for earning increments to pension would be justified.

Mr. Jenkin

On the last part of the right hon. Lady's Answer, may I ask whether she recognises that the problem arises where there is an increase in the rate of payment and a corresponding increase in the rate of contribution? A person who defers retirement beyond normal retiring age can therefore be paying contributions at a higher rate but become entitled to increments only at a lower rate. Does she not think that this is rather unfair?

Miss Herbison

If one were to adopt the suggestion in the hon. Member's question it would be much more unfair to the general mass of the contributors to the scheme.

Mr. Dean

Can the Minister say whether this and similar questions will be considered by the National Insurance Advisory Committee when it looks at the retirement conditions and earnings rule?

Miss Herbison

At present the National Insurance Advisory Committee is examining very carefully all aspects of the earnings rule as it applies to pensions.