§ Mr. OlnerTo ask the Secretary of State for Social Security what estimates he has made of the net present value of(a) additional expenditure on SERPS pension and (b) savings made from reduced expenditure on national insurance rebates and incentives paid on contributions made to appropriate personal pensions payments in (i) 2025, (ii) 2030, (iii) 2040 and (iv) 2050, if (1) all and (2) half of those earning under £10,000 per annum currently opted out of SERPS into APPs were to rejoin SERPS. [15592]
§ Mr. Heald[holding answer 14 February 1997]: We estimate that the net present value of additional SERPS expenditure if all holders of appropriate personal pensions—APPs—who earn under £10,000 were to join SERPS would be £110 million in 2025–26; £80 million in 2030–31; £10 million in 2040–41 and zero in 2050–51. The additional SERPS expenditure if half of those APP holders earning under £10,000 were to join SERPS is estimated at £50 million in 2025–26; £40 million in 2031–32; zero in 2040–41 and 2050–51.
We estimate that the net present value of reduced expenditure on national insurance rebates if all holders of APPs who earn under £10,000 were to join SERPS would be £170 million in 2025–26; £130 million in 2030–31; £10 million in 2040–41 and zero in 2050–51. The reduced expenditure if half of those APP holders earning under £10,000 were to join SERPS is estimated at £80 million in 2025–26; £60 million in 2031–32; £10 million in 2040–41 and zero in 2050–51.
The costings assume that those holding APPs in 1996–97 would otherwise continue as APP holders in the projected period. In addition, they are assumed to have the same real earnings in these future years as they did in the base year. All figures are expressed in 1996–97 prices, discounted.