HC Deb 30 March 1999 vol 328 cc626-7W
Mr. Webb

To ask the Secretary of State for Social Security if he will calculate the second tier pension entitlement under(a) SERPS, (b) the first phase of the State Second Pension and (c) the second phase of the State Second Pension for those earning (i) £15,000, (ii) £17,000 and (iii) £19,000. [78867]

Mr. Timms

The information is in the table.

£
Second tier pension entitlement in 2051
State Second Pension
Phase 1 Phase 2
Annual Earnings SERPS Carries on to Contracted in Contracted out1
15,000 46 61 50 61
17,000 51 63 50 63
19,000 54 65 50 65
1 Assumes that an individual contracts out of the State Second Pension and contributes only their rebate to an appropriate personal pension.

Notes:

1. The information is based on the thresholds set out in the Green Paper.

2. It is likely that the upper threshold of £18,500 contained in the Green Paper will be revised upwards following consultation to reflect the policy intention that higher earners should get broadly the same entitlement from phase 1 of State Second Pension as from SERPS.

3. The hypothetical individual in this example is assumed to; begin work at 16 years old in 2002, work for 49 years until retirement, earn the specified amounts in 1998 earnings terms throughout their working life.

4. Only National Insurance rebates are paid into the appropriate personal pension.

5. Real earnings growth is assumed to be 1.5 per cent.

6. Amounts are rounded to the nearest pound.