§ Mr. FlynnTo ask the Secretary of State for Social Security what steps have been taken to ensure that people contracting out by means of personal pension schemes have been advised of the approximate age at which, assuming a rate of return of 0.5 or 2.5 per cent. above the annual increase in earnings, it is likely to be in their interest to return to the state scheme.
§ Mrs. Gillian ShephardIt is for an individual wishing to take out a personal pension to seek advice appropriate to his or her needs. In the case of personal pension schemes which are investments as defined in the Financial Services Act, persons regulated by bodies under that Act have a duty to provide best advice on such products. It is for the individual to make arrangements for obtaining any further advice which may be necessary in the light of changing circumstances.
§ Mr. FlynnTo ask the Secretary of State for Social Security whether anyone contracting out by means of a personal pension scheme will be allowed to return to the state scheme at any age.
§ Mrs. Gillian ShephardYes.
§ Mr. MeacherTo ask the Secretary of State for Social Security if he will publish in theOfficial Report, for each uprating from 1973 to 1990, the percentage above inflation by which the basic state pension has, and is to be, uprated.
§ Mrs. Gillian Shephard[holding answer 13 December 1989]: The information requested is set out in the table.
781W
Uprating Increase of retirement pension above RPI (percentage) October 1973 4.9 July 1974 15.6 April 1975 -1.7 November 1975 3 November 1976 0 November 1977 1.4 November 1978 3.3 November 1979 2.1 November 1980 1.2 November 1981 -3 November 1982 4.7 November 1983 0 November 1984 0 November 1985 0 July 1986 0 April 1987 0
Uprating Increase of retirement pension above RPI (percentage) April 1988 0 April 1989 0 April 1990 0 In November 1983 the method of uprating changed from being partly based on forecasts of future inflation to being based on known movements in the retail prices index.