§ Mr. HainTo ask the Secretary of State for Social Security whether he will reconsider the rules governing the distribution of pension surpluses in order to protect the rights of employees; and if he will make a statement.
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§ Miss WiddecombeMeasures to protect the members of occupational pension schemes were included in the Social Security Act 1990. One of these came into effect from 17 August 1990 and prevents payments being made from a pension scheme to the employer unless members are guaranteed annual increases in their pensions in line with prices, up to 5 per cent. A further measure will, when implemented, require final salary pension schemes to pay indexed pension increases up to a maximum of 5 per cent. a year. This limited price indexation provision will apply to all such schemes in respect of future service, and in respect of past service to schemes with a surplus.
§ Mr. HainTo ask the Secretary of State for Social Security what information he has on the total amount of pension surpluses held by companies with pension funds.
§ Miss WiddecombeIt is not possible to assess the total amount of surpluses on a common basis at any given date as schemes produce valuations at different times and on different methods and assumptions.