HC Deb 30 June 1993 vol 227 cc502-3W
Mr. Cohen

To ask the Chancellor of the Exchequer what has been the total amount of pension fund surplus represented by(a)employer/employee contribution holidays, (b) improved benefits and (c) taxable refunds to the employer in each year since 1986; and what proportion of surplus reduction is represented by each method.

Mr. Dorrell

Information is not available in the form requested. The tables below give information on large self-administered pension funds reporting to the Inland Revenue on proposed action to remove surpluses following the provisions in the Finance Act 1986, and on total refunds to employers from occupational pension schemes.

Large Self Administered Schemes, bv method of reduction of Surplus. 1987–88 to 1992–931
£ million
Method of reduction Amount of reduction Proportion of surplus reduction Per cent.
Contributions holiday (employer) 7,932 38
Contributions holiday (employee) 155 1
Contributions reduction (employer) 3,169 15
Contributions reduction (employee) 566 3
Refund to employer2 1,174 6
Increase in benefits 7,471 36
New benefits 106 1
Total 20,574
1The figures shown represent the total to be eliminated by each method. Some of the planned reductions are timed to fall in years subsequent to 1992–93. Amounts are based on the actuary's estimated reduction for each category.
2 The figures for refunds to employers exclude amounts paid over by schemes reported to be wound up in each year.

Refunds to the employer from all occupational pension schemes Schemes reporting in refunds
£ million
1987–88 85
1988–89 208
1989–90 380
1990–91 578
1991–92 403
1992–93 235