SERPS (Publicity) (Hansard, 5 March 2002)

§ Mr. McCartney

We have taken a series of steps to ensure people are made aware of the remedial measures we have taken to rectify the problems created by the failure to publicise adequately the 1986 legislative changes to Inherited SERPS.

These measures, which my right hon. Friend the Secretary of State announced to the House on 29 November 2000, and which subsequently became law on 20 March 2001, were: to postpone any change to the rules on inherited SERPS until October this year; ensure existing pensioners, and people due to reach state pension age before this October were not affected by the change; and phase the reduction for people within 10 years of state pension age—allowing them time to plan ahead.

During the course of last year, the Department wrote to all existing pensioners, and those whose state pension age falls before 5 October 2002 to reassure them that, in the event of their death, the new rules on Inherited SERPS will not affect their spouses.

We are now going further to ensure that people understand the changes. From 11 March, the Department will start writing to some 5 ½ million people within 10 years of state pension age—those who, under the new rules, can pass on between a maximum of 90 per cent. and 60 per cent. of their SERPS to a surviving spouse.

The letter, and the accompanying leaflet, will not only explain how the changes may affect them, but will also give them the opportunity to request an estimate of the SERPS they can pass on, and impartial information on financial planning.

In addition, from August this year, we will run a media campaign to further disseminate information on the changes to the public at large.

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We have taken action to ensure that the Department's staff are aware of the new rules, and the Department will also provide a dedicated helpline 0845 600 6116 or textphone 0845 602 1913 to answer further queries and provide information to members of the public.