§ Baroness Castle of Blackburn
asked Her Majesty's Government:
What would be the loss of revenue to the Treasury if employees' contributions to SERPs were to be given the same tax relief as that enjoyed by contributors to occupational pension schemes and personal pensions. [HL2618]
§ Lord McIntosh of Haringey
SERPS is an unfunded scheme, with current national insurance contributions paying for today's benefits and pensions. However, by analogy with appropriate personal pension schemes which are funded, the cost of grossing up the employee part of the national insurance rebate, as if all those currently in SERPS had contracted out of SERPS and into personal pensions, is tentatively estimated at around £300 million a year at 1998–99 levels of earnings.