§ Mrs. Thatcherasked the Minister of Pensions and National Insurance what her estimate is of the total sum which the National Insurance Fund is liable to pay in graduated pension benefits by virtue of graduated contributions paid to the fund by March, 1965; how much of this total sum remains unpaid; and over what period payment will fall due.
§ Miss HerbisonThe total sum is estimated at about £1,100 million, almost all of which remains unpaid, and which will fall due over a period of about 80 years.16W The current capital equivalent of this liability is lower to an extent which depends on the rate of interest assumed.
§ Mrs. Thatcherasked the Minister of Pensions and National Insurance (1) what her estimate is of the excess of graduated pension contributions paid in, over graduated pensions benefits paid out, in each of the next five financial years;
(2) what her estimate is of the amount that the National Insurance Fund will become liable to pay as graduated pension benefits by virtue of graduated contributions paid in each of years 1965–66, 1966–67 and 1967–68, assuming that average earnings will increase at the same rate in the next three years as they have in the past three years.
§ Miss HerbisonMaking the assumption stated by the hon. Lady and applying it over the next five financial years, it is estimated that income from graduated pensions contributions will exceed expenditure on graduated pensions by the following amounts:
£ million 1965–66 288 1966–67 307 1967–68 327 1968–69 346 1969–70 363 On the same assumption, the total amounts of pension which will become payable by virtue of graduated pensions contributions paid in 1965–66, 1966–67 and 1967–68 are estimated at £380 million, £400 million and £430 million, respectively. The current capital equivalents of these pension liabilities are lower to an extent which depends on the rate of interest assumed.