§ Mr. Austin MitchellTo ask the Secretary of State for Social Security what is his estimate of the cost of( a) contribution rebates and ( b ) greater payments to those withdrawing from SERPS in (i) 1987–88, (ii) 1988–89 and (iii) 1989–90.
§ Mrs. Gillian ShephardI refer the hon. Member to appendix 7 of the report by the Government Actuary on the Drafts of the Social Security Benefits Uprating Order 1990 and the Social Security (Contributions, Re-Rating) Order 1990 (Cm 948), a copy of which is in the Library.
§ Mr. Austin MitchellTo ask the Secretary of State for Social Security what is his estimate of the total number of contributors leaving SERPS by the end of this financial year; what has been the total cost of incentive payments to them; and what was the total loss of contributions to the fund in the financial year.
§ Mrs. Gillian ShephardIt is not possible to give an estimate of the number of people who will have left SERPS in this financial year to become members of an occupational or personal pension scheme, but it is anticipated that the vast majority of those taking out a personal pension will previously have been in SERPS.
The Government Actuary's estimate of revenue forgone by the national insurance fund in 1990–91 through payment of the incentive for personal pensions and new contracted-out schemes in respect of 1989–90 is £615 million. His estimate of total revenue forgone in 1990–91 in respect of the incentive and the standard rebates is £2,115 million.