§ Mr. DenhamTo ask the Secretary of State for Social Security what would be the effect on the national insurance fund, over the next five years if all those with an appropriate personal pension and an annual income of less than £10,000, were to opt back into SERPS. [4463]
§ Mr. HealdThe information is in the table.
Great Britain Year Savings to the national insurance fund (£million) 1995–96 0 1996–97 400 1997–98 400 1998–99 350 1999–2000 350 Notes:
- 1. It has been assumed that the £10,000 is a fixed cash amount each year and earnings and prices assumptions are consistent with the recent 1995 Budget Statement.
250 - 2. Currently, the rebate paid to a personal pension account is based on class 1 reckonable earnings between the lower earnings limit and the upper earnings limit. The rate of rebate is 4.8 per cent. of these band earnings plus 1 per cent. of band earnings for those aged 30 and over.
- 3. From April 1997, the APP rebates will become age-related. Because the Secretary of State has not yet determined the level of these rebates, the amounts shown in the table have been calculated by using the rates in the Government Actuary's recent consultative note.
- 4. Because the rebate in respect of a year's earnings is not paid into the personal pension account until the following year, there is no effect on the first year of the above table.
- 5. The figures have been rounded to the nearest £50 million.
Source:
Government Actuary's Department.