§ 10. Mrs. RoeTo 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. NewtonWe 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. RoeDoes 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. NewtonMy 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.