HC Deb 19 December 1985 vol 89 cc319-21W
Mr. Alfred Morris

asked the Secretary of State for Social Services how he proposes to provide special protection (a) for women with breaks in work to bring up families, (b) for those who become disabled and (c) for those looking after disabled people, following the proposed abolition of the best-20-years rule in SERPS; and if he will make a statement.

Mr. Meacher

asked the Secretary of State for Social Services under the proposals in the White Paper, "Reform of Social Security" (Cmnd. 9691), on the basis of what number of years life-time average earnings will be calculated for (a) men and (b) women, for the purposes of obtaining full pension entitlement.

Mr. Newton

For people reaching state pensionable age after 4 April 1999, when the 20 best years rule would have come into effect, state earnings related pensions will be calculated on the basis of earnings in all the tax years in their working life between 1978–79, or the tax year in which their 16th birthday falls if later, and the tax year in which a woman reaches age 59 or a man age 64. Years from 1978–79 in which a person does not have sufficient earnings to qualify for basic pension will be excluded from the calculation (provided they do not reduce the total left in the working life to less than 20) if any of the following conditions are satisfied:

  1. (i) they were entitled to home responsibilities protection because they were looking after a child or a disabled or elderly person, or
  2. (ii) they were entitled to national insurance contribution (NIC) credits because of their own incapacity for work, or
  3. (iii) they qualified for NIC credits with invalid care allowance.

Mr. Meacher

asked the Secretary of State for Social Services if the guaranteed minimum level of contributions towards contracted out occupational or personal pension schemes proposed in the White Paper "Reform of Social Security" (Cmnd. 9691), will include both employer and employee contributions.

Mr. Newton

Paragraphs 2.48 to 2.50 of the White Paper explain how guaranteed minimum contributions will be paid to personal pensions. These contributions will include both employers' and employees' shares of the contracted-out national insurance contribution rebate.

The test for a contracted-out money purchase occupational scheme will be that the employer make contributions to the scheme at least equal to the total contracted-out rebate. But he will be entitled to recover up to the employee's share of the rebate from scheme members. This arrangement will leave employers, who choose to do so, free to operate schemes in which employees are not required to make any contributions.

Mr. Meacher

asked the Secretary of State for Social Services if he will publish versions of tables P1-P6 of the technical annex to the White Paper, "Reform of Social Security," (Cmnd. 9691), showing projections based on current SERPS provisions.

Mr. Newton

I shall let the hon. Member have a reply as soon as possible.

Mr. Meacher

asked the Secretary of State for Social Services under the proposals in the White Paper, "Reform of Social Security" (Cmnd. 9691), if all employees will have the right to choose between (a) SERPS, (b) occupational pensions and (c) personal portable pensions.

Mr. Newton

All employees will have the right to take an approved personal pension rather than staying fully in the state earnings—related pension scheme or an occupational pension scheme. An employee will have access to an occupational scheme only if his employer operates a scheme which he is eligible to join. The White Paper also makes it clear that once someone has left an occupational scheme to take a personal pension it will be up to his employer whether or not he can rejoin the scheme later on. Any employee, with sufficient earnings to make him eligible, will continue to be fully in SERPS, if he is not in a contracted-out occupational or personal pension scheme.

Mr. Meacher

asked the Secretary of State for Social Services, under the proposals in the White Paper, "Reform of Social Security" (Cmnd. 9691); if all employees will be able to make additional contributions towards SERPS pensions as well as to occupational and personal pensions.

Mr. Newton

No.