HC Deb 25 March 2002 vol 382 cc644-7W
Mr. Webb

To ask the Secretary of State for Work and Pensions (1) if he will estimate the number of(a) people receiving and (b) pension providers issuing combined pension forecasts; [43359]

(2) if he will estimate the number of (a) employers and (b) pension providers who are providing information for the combined pension forecast. [43358]

Mr. Nicholas Brown

[holding answer 14 March 2002]: To date, 33,662 customers have received a combined pension statement issued in partnership with four employers and three pension providers.

Since its launch at the annual Pensions Show on 17 October 2001, the new service has received expressions of interest from 91 private or occupational pension providers who wish to take advantage of this new, voluntary service.

These providers are progressing through the various stages involved in introducing the service to their customers, including the formal registration process, obtaining the required customer consent to exchange personal information with the Department and developing their IT systems to share data electronically.

Mr. Cousins

To ask the Secretary of State for Work and Pensions if he will estimate what proportion of(a) occupational pensions defined by benefit, (b) occupational pensions defined by contribution and (c) personal pensions provided for survivor benefits or joint life annuities; and what proportion of such pensions provide for indexation of pensions. [37040]

Mr. Nicholas Brown

The information is not available in the format requested. Such information as is available is in the table.

Numbers of active members of defined benefit schemes according to benefits payable on death after retirement
Thousands
Benefit payable As of right under scheme rules Private sector At trustees' discretion As of right under scheme rules Public sector At turstees' discretion Total
Pension to surviving spouse 4,810 220 4,100 9,130
Pension to surviving children 3,090 600 4,100 7,790
Pension to a divorced ex-spouse 200 1,680 600 160 2,640
Pension to any nominated person 320 2,560 600 340 3,820
Total active members of defined benefit schemes 5,140 4,100 9,240

Notes:

1. Schemes may be included under more than one category in the above table.

2. The GAD survey did not include information on the number of defined contribution and personal pension in payment that provide for a survivor's pension as most of these schemes provide a lump sum on retirement with which the member buys a pension. It is then up to the member to choose whether or not the pension will provide for a survivor's pension. In a defined contribution scheme used to contract out of the state earnings related pension scheme (SERPS), that part of the pension deriving from the national insurance contribution rebate (the protected rights) must be used to purchase a pension providing for a survivor's pension where the member is married at the time the pension is purchased.

3. The same rules apply to personal pensions. It is entirely a matter for the member to decide whether or not the pension provides for survivor's benefits except where the personal pension has been used to contract out of (SERPS). In these circumstances, that part of the pension fund comprising the protected rights, must be used to purchase a pension providing for a survivor's pension where the member is married at the time that the pension is purchased.

4. All occupational pension schemes (both defined benefit and defined contribution) are subject to indexation. That part of the pension in payment that derives from pension rights built up from 6 April 1997 must be increased by the percentage increase in the retail price index, or 5 per cent, whichever is the lesser.

5. With personal pensions only that part of the pension deriving from the protected rights is subject to indexation. It is up to the scheme member to decide whether or int the pension deriving from the excess of these rights is to be indexed.

Source:

Table 10.9 of the GAD Survey of Occupational Pension Schemes 1995

Mr. Boswell

To ask the Secretary of State for Work and Pensions in each of the past 30 calendar years what was the(a) percentage ratio of current average earnings to the state basic retirement pension, (b) same percentage ratio to average state pension paid to individuals (excluding dependent spouses) and (c) same percentage ratio to mean income from state and occupational pension schemes. [40112]

Maloclm Wicks

[holding answer 5 March 2002]: The niformation requested is in the tables.

Average earnings as a percentage of full basic pension
Percentage
September 1971 435
October 1972 425
October 1973 413
July 1974 364
April 1975 359
November 1975 406
November 1976 420
November 1977 401
November 1978 406
November 1979 385
November 1980 406
November 1981 422
November 1982 416
November 1983 433
November 1984 445
November 1985 446
July 1986 477
April 1987 504
April 1988 531
April 1989 550
April 1990 561
April 1991 548
April 1992 563
April 1993 565
April 1994 565
April 1995 571
Average earnings as a percentage of full basic pension
Percentage
April 1996 575
April 1997 589
April 1998 594
April 1999 599
April 2000 608
April 2001

Notes:

1. Average earnings figure not yet available for April 2001.

2. Figures for GB

Average earnings as a percentage of average category A/AB pension paid
Percentage
April 1995 608
April 1996 612
April 1997 626
April 1998 633
April 1999 638
April 2000 648
April 2001

Notes:

1. Average earnings figure not yet available for April 2001.

2. Information on average amount of Category A pension paid is not available prior to April 1995.

3. Taken from administrative data.

4. Figures are for GB.

Average earnings as a percentage of state and occupational pension schemes for pensioner units
Percentage
April 1994 262.7
April 1995 264.8
April 1996 258.6
April 1997 258.9
April 1998 258.1
Average earnings as a percentage of state and occupational pension schemes for pensioner units
percentage
April 1999 256.5
April 2000
April 2001

Notes:

1. The figures are based statistics published in the Pensioner Income Series 1999–00.

2. The definition of a pensioner unit is a single person over state pension age or a couple where the man is over state pension age.

3. Data for years prior to 1994–5 would only be possible using the Family Expenditure Survey but this analysis is not readily available.

4. Since parts (a) and (b) of this question are based on DWP administrative data on benefit receipt, part (c) is not directly comparable.

5. Figures are for GB.

Mr. Boswell

To ask the Secretary of State for Work and Pensions how many employees in each of the last ten years were(a) participants in contracted-out funded pension schemes, (b) participants in contracted-in payments to the national insurance system and (c) outside either category. [40111]

Malcolm Wicks

[holding answer 5 March 2002]: The information requested is not available. Such information as is available is in the table.

Thousand
Total number contractede-out Total number belonging to SERPS1 Total number of workers not contracted-out or belonging to SERPS
1991–92 14,931 6,471 2,356
1992–93 14,849 6,327 2,064
1993–94 14,659 6,555 2,816
1994–95 14,566 7,115 1,357
1995–96 14,817 7,496 922
1 These include employees who are members of contracted-in occupational pension schemes. In his publication titled "Occupational Pension Schemes-1995", the Government Actuary estimated that in 1995, there were 1.3 million members of such schemes.

Source:

"Second Tier Pension Provision 1995–96" and "Labour Force Survey"—Department for Work and Pensions' Analytical Services Division

Chris Grayling

To ask the Secretary of State for Work and Pensions if he will change the practice of starting a pension from the Monday following a person's 60 or 65 birthday. [37423]

Mr. Nicholas Brown

Entitlement to Retirement Pension begins with the pay-day on or following the pensioner's 60 or 65 birthday. Changes in entitlement, for example a decrease because of a prolonged stay in hospital, also takes effect from the pay-day following the change in circumstances. The same rule applies with the termination of the award. The principle of paying Retirement Pension in whole weeks stems from the fact that the benefit is traditionally paid in advance.

There are no plans to change the present arrangements for paying Retirement Pension.