Dr. Tony WrightTo ask the Secretary of State for Social Security what estimate he has made of the cost of exempting all persons who have already reached pensionable age from the reduction in SERPS entitlements contained in the provisions of the Social Security Act 1986. [123575]
§ Mr. RookerThe estimated cost of exempting all persons who had reached pensionable age by April 2000 from the change in the rate of SERPS inheritance that was due to have taken effect at that time is estimated at £7,100 million. This excludes the effect of other changes to SERPS also introduced by the 1986 Act.
The cost was estimated by the Government Actuary's Department (GAD) and is expressed as the net present value of the annual figures from 2000–01 to 2050–51 in 1999–2000 prices, discounted at an annual real rate of 6 per cent. It has been prepared on a basis which is consistent with the latest GAD Quinquennial Review.