§ Mr. FieldTo ask the Secretary of State for Social Security how many payments to private pension schemes have been delayed due to computer difficulties; how many payments have been delayed(a) up to three, (b) three to six, (c) six to nine, (d) nine to 12 and (e) over 12 months, indicating the size of the compensation payments for each of these groups; and if payments will take account of changes in the equity market. [68823]
§ Mr. TimmsThe information is not available in the format requested. Such information as is available is as follows.
The calculation of the National Insurance Rebates contains an assumption that they are paid in the October following the end of the tax year for which they are due. Normally around 90 per cent. of payments have been made by that date, and a further 95 per cent. by December. 780W This year by October, 14 per cent. had been paid, and by December, 46 per cent. Currently, 67 per cent. has been paid.
We recognise the need to pay compensation for payments that have been delayed after October and arrangements are in place to pay 0.5 per cent. per month for each month of delay. The November payments therefore included compensation at the rate of 0.5 per cent., the December payment at 1 per cent., the January payment 1.5 per cent. and the February payment 2 per cent. Approximately £15.3 million in compensation has been paid to occupational and personal pension schemes in respect of individual scheme members up to February 1999.
The level of compensation was discussed with the Government Actuary's Department who agreed that 0.5 per cent. per month represented a reasonable level of compensation given the prevailing market conditions in September 1998, and on the assumption that the arrangements put in place at that time were designed to cover a few months delay. This continues to be their view, and we have no plans to review this rate.