§ Mr. RadiceTo ask the Secretary of State for Social Security what has been the cost to date to public funds of the incentive for contracting out pensions.
§ Mr. HagueThe cost to the national insurance fund to date of the 2 per cent. incentive to newly contracted-out pensions is estimated at £.3.6 billion.
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§ Mr. RadiceTo ask the Secretary of State for Social Security how many rebate-only personal pensions have been sold since they were introduced; what is the estimated administrative expense involved in each case; what controls there are over administrative expenses in such cases; and what requirements as to warnings to purchasers comparing the risks and expense overheads compared with the state earnings-related pension scheme have been made by the DSS.
§ Mr. HagueThe information is not available in the form requested. Since 1988, the Contributions Agency has received 6,456,901 applications to contract out of SERPS by way of an appropriate personal pension—although the number of APP holders in any one year would be less than that. Inland Revenue data suggest that, in the financial year 1991–92, 2.1 million APP holders made payments in addition to the DSS contribution. Information about the administrative expenses connected with those pensions is not available. Rules on the marketing of personal pensions and other investment products are a matter for the Securities and Investments Board.
§ Mr. RadiceTo ask the Secretary of State for Social Security what has been the estimated total administrative expense of appropriate personal pensions and the equivalent anticipated administrative expenses for the contracted-out cohort through the national insurance fund.