§ Mr. MeacherTo ask the Secretary of State for Social Security how much was paid out as(a) incentive bonuses and (b) rebates to persons opting out of (i) SERPS and (ii) occupational pension schemes for each year since 1986; and how many persons opted out in each case during each of these years.
§ Mr. JackThe main objective of the pensions reforms was to reduce the long-term costs of SERPS by encouraging the growth of alternative forms of pension provision.
The Government Actuary estimates that the numbers opting out of SERPS (either in contracted-out occupational schemes or with personal pensions) are as follows:
Great Britain, Millions Number in contracted-out schemes Number with personal pensions Total contracted-out 1987–88 9.1 3.1 12.2 1988–89 9.3 3.1 12.4 1989–90 9.4 4.0 13.4 The revenue forgone in respect of rebates and incentives is estimated to be as follows:
Great Britain, £ billions Rebates to schemes Rebates to personal pensions Rebates Total Incentives to schemes and personal pensions 1987–88 4.7 1.0 5.7 0.3 1988–89 4.8 1.0 5.8 0.4 1989–90 5.3 1.5 6.8 0.6 The amounts paid are shown against the year to which they relate rather than the year in which payment was made.