§ Mr. SheermanTo ask the Secretary of State for Social Security how many individuals currently have their earnings-related pension reduced as a result of payments from a company pension scheme. [18854]
§ Mr. HealdAs at 31 March 1995, there were 2,305,840 individuals whose additional pension was reduced, or extinguished, as a result of contracted-out deductions in respect of payments from a company or personal pension scheme.
757WThe contracted-out deduction is the term used to describe the reduction in the additional pension of someone who has been a member of a contracted-out pension scheme or a personal pension scheme used in place of the additional pension.
§ Ms CorstonTo ask the Secretary of State for Social Security, pursuant to his answer of 19 February,Official Report, column 40, (a) what the breakdown in public spending per capita and per recipient is estimated by the Government Actuary to be on (i) retirement pensions, (ii) the state earnings-related pension scheme, (iii) other public pensions and (iv) all publicly provided pensions, (b) what is the corresponding estimate of contributions required per capita and per contributor from national insurance and (c) what is the corresponding estimate of the percentage of gross domestic product of total public spending on pensions, on the basis of the Government's assumption of 1.5 per cent. per annum growth in (1) 1994–95, (2) 2000–01, (3) 2010–11, (4) 2020–21 and (5) 2030–31, at 1994 prices. [19031]
§ Mr. HealdThe information is not available in the format requested. Public spending on all publicly provided pensions is not held centrally, and could be provided only at disproportionate cost. The Government Actuary's Department does not forecast the number of SERPS recipients.
Such information as is available is shown in the tables:
Breakdown of public spending £ 1994–95 2000–01 2010–11 2020–21 2030–31 Retirement pensions Per capita 474 514 566 584 693 Per recipient 2,663 2,709 2,710 2,838 2,850 SERPS Per capita 32 72 141 181 198 Per recipient n/a n/a n/a n/a n/a Other public pensions Per capita 18 13 11 20 19 Per recipient 2,485 2,462 2,340 2,600 2,600 758W
Contributions required £ 1994–95 2000–01 2010–11 2020–21 2030–31 Retirement pensions Per capita 474 514 566 584 693 Per contributor 1,300 1,313 1,400 1,419 1,753 SERPS Per capita 32 72 141 181 198 Per contributor 87 185 350 440 502 Other public pensions Per capita 18 13 11 20 19 Per contributor 50 32 27 49 47
Percentage of GDP Total spending on pensions (i), (ii) and (iii) Percentage 1994–95 4.4 per cent. 2000–01 4.7 per cent. 2010–11 5.0 per cent. 20020–21 4.7 per cent. 2030–31 4.8 per cent. 1. All figures are based on 1994–95 prices. Spending is rounded to the nearest £1, and percentages are rounded to the nearest 0.1 per cent.
2. Retirement pensions are comprised of basic retirement pension and graduated retirement benefit.
3. Other public pensions are comprised of widows' pension (basic) and widows' pension (additional pension).
4. Expenditure on benefits and population figures are taken from the report by the Government Actuary on the third quinquennial review under section 137 of the Social Security Act 1975.
5. Numbers of recipients and contributors are taken from, or under the Pensions Bill 1994 report by the Government Actuary on the financial provisions of the Bill on the national insurance fund, except for 1994–95 which are based on actual numbers.
6. The number of contributors each year excludes approximately 200,000 people paying class 3 contributions.
7. The underlying GDP figures assume 1.5 per cent. per annum growth from the 1994–95 GDP figure given in table 6A.1 of the Financial Statement and Budget Report 1996–97.
§ Ms CorstonTo ask the Secretary of State for Social Security what estimate he has made of(a) public spending on SERPS and (b) the corresponding contribution rate in respect of SERPS only (i) before the Pensions Act 1995 and (ii) in (1) 1994–95, (2) 2000–01, (3) 2010–11, (4) 2020–21 and (5) 2030–31, at 1994 prices. [19211]
§ Mr. HealdThere is no corresponding contribution rate in respect of SERPS only. The contribution rate is a global figure calculated so that it is sufficient to pay all national insurance fund benefits on a pay-as-you-go basis. However, some indication of a contribution rate equivalent to net SERPS expenditure is given in the table.
Percentage 1994–95 2000–01 2010–11 2020–21 2030–31 Pre Pensions Act 1995 Net SERPS expenditure £ billion 1.8 4.2 9.2 14.5 18.7 Equivalent contribution rate 0.8 1.5 2.6 3.7 4.5 Post Pensions Act 1995 Net SERPS expenditure £ billion 1.8 4.2 8.4 10.9 12.0 Equivalent 0.8 1.5 2.4 2.8 2.8 contribution rate per cent. per cent. per cent. per cent. per cent. Notes:
1. The principle underlying the table is that if, say, estimated net SERPS expenditure equals one-quarter of total expenditure on national insurance fund benefits then one-quarter of the contribution rate necessary to balance the Fund pays for the net SERPS. Hence, the lower is net SERPS expenditure the lower the equivalent contribution rate will be.
2. The contribution rate in the above table is that part of the gross class 1 contribution rate required to meet the estimated cost of net SERPS. However, it is assumed that a similar proportion of class 2, 3 and 4 contributions is also used to meet the cost of net SERPS.
3. The expenditure on net SERPS is in respect of retirement pensions only and is in 1994–95 prices.
Source:
Government Actuary's Department.
759W