§ Mr. OlnerTo ask the Secretary of State for Social Security what estimates he has made of(a) the impact on the revenue of the national insurance fund and (b) the savings in the current financial year from reduced expenditure on national insurance rebates and incentives 209W paid on contributions made to APPs if (i) all and (ii) half of those have opted out of the state earnings-related pension scheme into appropriate personal pensions and earn under £10,000 per annum were to rejoin SERPS. [15593]
§ Mr. Heald[holding answer 14 February 1997]: The net present value of the additional expenditure on SERPS in future years would be approximately £120 million at current prices if all those with earnings less than £10,000 were to rejoin SERPS for 1996–97 and £60 million if half of those with earnings less than £10,000 rejoined.
The savings on national insurance rebates and incentives for 1996–97 is estimated to be around £240 million if all those with earnings less than £10,000 were to rejoin SERPS and £120 million if half of those with earnings less than £10,000 rejoined.
Notes
1. A discount rate of 3.75 per cent. has been used to calculate the net present value of future expenditure. This discount rate is consistent with the Government Actuary's review of contracting out.