HC Deb 02 April 1990 vol 170 c883
10. Mrs. Roe

To ask the Secretary of State for Social Security what representations he has received about his proposals requiring a pension scheme to fund increases on wind-up.

Mr. Newton

We have received a number of representations, some suggesting possible repercussions for certain businesses and some suggesting that a requirement for pension increases should apply generally. In the light of the representations, I announced that pension schemes will be required to pay annual increases on pensions resulting from future service. On pensions based on past service, in addition, where schemes have a surplus, they will have to guarantee increases to members.

Mrs. Roe

Does my right hon. Friend agree that those proposals represent a major step forward in the protection of millions of people who hold occupational pensions? Does he further acknowledge that the greatest protection for holders of pensions is a strong economy and low inflation? Can he give the House any details about pensioners' incomes from occupational pensions since 1979?

Mr. Newton

My answer to the first two parts of my hon. Friend's question is yes. The average income received by a pensioner with an occupational pension was nearly £45 a week in 1987, which represents a 77 per cent. increase over the amount received in 1979.

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