§ Mr. WillettsTo ask the Secretary of State for Social Security if the Government will have access to information on stakeholder pensions to enable it to ascertain whether sales are to people outside or within its target group. [130762]
§ Mr. RookerWe are planning to collect a range of statistical data. It is intended that this data will, in due course, include information about the level of members' earnings which will enable us to determine how many sales are to people in the target group, as part of the total market for Stakeholder Pensions.
§ Mr. FieldTo ask the Secretary of State for Social Security what the basis is for his calculation that it would be advantageous for a person earning £9,500 to contract out of the state second pension into a stakeholder pension. [131326]
§ Mr. RookerStakeholder pensions will be open to people at all income levels but are primarily intended for moderate earners—those earning between around £10,000 and £20,000 a year—as well as higher earners. It will be for individuals to decide whether or not to use a stakeholder pension to contract out of the state scheme, but National Insurance rebates for people who do contract out are set at a level which reflects the cost of providing the state benefits forgone. The state second pension is structured to provide extra help in the state scheme above that available from SERPS for people on earnings up to around £20,000. The new contracting-out arrangements have been designed so that members of contracted-out 117W pension schemes will benefit from the extra help that the state second pension brings to low and moderate earners, either through higher rebates or a state scheme top-up.