§ Mr. SteinbergTo ask the Secretary of State for Social Security if he will list(a) the basic retirement pension and (b) state earnings-related pension scheme for male and female contracted-in employees on average and half average earnings assuming pensions are uprated in line with (1) prices and (2) earnings in (i) 1998–99, (ii) 2025 and (iii) 2035, based on the Government Actuary's assumptions for annual increases in (a) retail prices index, (b) the Rossi index and (c) earnings expressed in current prices and as a percentage of average earnings. [21063]
§ Mr. HealdThe information is in the tables:
Retirement pension uprated in line with prices Benefit rates at award given in 1996–97 prices rounded to the nearest £0.01 1998£ 2025 £ 2035 £ Basic RP 61.15 61.15 61.15 SERPS on average male earnings 85.86 109.95 117.13 SERPS on average female earnings 53.40 78.25 92.23 SERPS on half average male earnings 35.70 50.58 61.82 SERPS on half average female earnings 19.47 29.46 38.73 914W
Benefit rates expressed as a percentage of individual's earnings in the tax year state pension age is reached, rounded to the nearest 1 per cent. 1998 2025 2035 Average male earnings Basic RP 15 9 1 SERPS 21 16 14 Average female earnings Basic RP 21 12 10
Benefit rates expressed as a percentage of individual's earnings in the tax year state pension age is reached, rounded to the nearest 1 per cent. 1998 2025 2035 SERPS 18 15 15 Half average male earnings Basic RP 30 17 14 SERPS 17 14 14 Half average female earnings Basic RP 41 24 20 SERPS 13 12 13
Basic retirement pension uprated in line with earnings Benefit rates at award given in 1996–97 prices rounded to the nearest £0.01 1998 £ 2025 £ 2035 £ Basic RP 62.37 106.46 129.78 SERPS on average male earnings 85.86 118.13 137.50 SERPS on average female earnings 53.40 75.90 91.32 SERPS on half average male earnings 35.70 47.91 56.36 SERPS on half average female earnings 19.47 26.80 33.37
Benefit rates expressed as a percentage of individual's earnings in the tax year state pension age is reached, rounded to the nearest 1 per cent. 1998 2025 2035 Average male earnings Basic RP 15 15 15 SERPS 21 17 16 Average female earnings Basic RP 21 21 21 SERPS 18 15 15 Half average male earnings Basic RP 30 30 30 SERPS 17 14 13 Half average female earnings Basic RP 42 42 42 SERPS 12 11 11 1. Actual 1995–96 earnings derived from 1996 new earnings survey (revised) data.
2. Earnings increases for 1996–97 and 1997–98 are as in the report by the Government Actuary on the drafts of the Social Security Benefits Up-rating Order 1997 and the Social Security (Contributions) (Re-rating and National Insurance Fund Payments) Order 1997 (CM 3547). Actual earnings revaluation figures have been used up to 1995–96, a provisional 1996–97 earnings revaluation has been used.
3. Uprating in line with prices (whether RPI or Rossi) is assumed to be at 5 per cent. per annum.
4. It is assumed that there is real average earnings growth of 2 per cent. per annum and that individuals have constant (non-age specific) earnings in each year of their working life.
5. Individuals are contracted in throughout their working life.
6. The actual levels of retirement pension, lower earnings limit, and upper earnings limit, are used up to 1997–98. The links between RP and the LEL and the UEL are maintained.
§ Ms HarmanTo ask the Secretary of State for Social Security what is the estimated value of the SERPS pension that would be earned by a woman on average female earnings throughout her time in work, assuming that she benefited from(a) five, (b) 10, (c) 15 and (d) 20 protected years due to caring responsibilities. [20465]
§ Mr. Heald[holding answer 17 March 1997]: The information is in the table.
915W
Home responsibilities protection period Weekly additional pension £ None 106.10 5 years, age 25–29 105.00 10 years, age 25–34 103.35 15 years, age 25–39 100.85 20 years, age 25–44 98.10 1. Figures are in 1996–97 prices and rounded to the nearest 5p.
2. It is assumed that the woman retires in 2044–5 aged 65 and she has been contracted in throughout her working life. In each year from age 16, except those years covered by home responsibilities protection, she earns average female adult earnings (£290 per week in 1996–97).
3. Real average earnings growth of 2 per cent. per annum is assumed.
Source:
The Government Actuary's Department.
§ Ms HarmanTo ask the Secretary of State for Social Security what is the estimated value of the SERPS pension that would be earned by a woman on half average female earnings in receipt of maximum family credit, assuming that she benefited from(a) five, (b) 10, (c) 15 and (d) 20 years of SERPS credits for those on family credit. [20466]
§ Mr. Heald[holding answer 27 March 1997]: The information is in the table.
Family credit period Weekly SERPS(£) Of which extra SERPS in respect of family credit (£) None 50.55 None 5 years, age 25–29 51.45 0.90 10 years, age 25–34 52.45 1.90 15 years, age 25–39 53.20 2.65 20 years, age 25–44 53.95 3.40 Source:
The Government Actuary's Department.
916WNotes:
1. Figures are in 1996–97 prices and rounded to the nearest 5p.
2. Employment and earnings assumptions are as follows:
— the woman retires in 2044–45 aged 65;
— half average female adult earnings of £145 per week gross and £126 per week net in 1996–97 earned in each year from age 16;
— any family credit received is taken into account as earnings in the SERPS calculation;
— real average gross and net earnings growth of 2 per cent. per annum;
— the woman is contracted in throughout her working life.
3. Each hypothetical case assumes that the woman is a lone parent working for at least 30 hours per week throughout her period of FC receipt, with an eldest child born at the start of the FC period, a middle child born at the start of the third year of FC and a youngest child born at the start of the fifty year of FC.
4. Maximum FC refers to the total amount of any adult and child premiums to which the claimant is entitled where the claimant's earnings are less than the applicable amount and so the taper does not bite. The 1996–97 applicable amount is £75.20, which is less than half average female adult earnings. It has therefore been assumed that each hypothetical case receives the full amount of FC to which it is entitled after the operation of the taper. This amount of FC will vary as children are born and age, thus entitling the claimant to different premiums, but it has been assumed that each of the premiums and the applicable amount remains constant in real terms.