HC Deb 12 February 1996 vol 271 cc471-2W
Mr. Denham

To ask the Secretary of State for Social Security if he will estimate the SERPS pension that would be paid, on retirement, under current regulations to a person with an annual income of(a) £5,000, (b) £7,500 and (c) £10,000 and (i) 45 years contribution record and (ii) 30 years contribution record and no contributions in other years. [13767]

Mr. Heald

The information is in the table.

Additional Pension £pw 1996–97 prices
Annual gross income
5,000 7,500 10,000
45 years contributions 28.50 51.80 71.50
30 years contributions 20.10 35.80 48.90

1. It is assumed that the annual gross income was the same in all years at either £5,000, £7,500 or £10,000, i.e. that the gross income was at these levels in 1978 and was not increased in line with increases in prices or earnings.

2. It is assumed the individual retires at SPA in 2023 after a working life of 45 years. Where the individual has made just 30 years of contributions it is assumed that their working life was also 45 years, but that they did not contribute in every third year.

3. In the calculation of additional pension, earnings have been revalued on the basis of historical data from the Average Earnings Index: all employees and on the assumption of constant future real terms earnings growth of 2 per cent. per annum.