§ Mrs. LaitTo ask the Secretary of State for Social Security what the Government's liability is for(a) the basic state pension, (b) SERPS and (c) state second pension in (a) 2000, (b) 2005, (c) 2010, (d) 2015, (e) 2020, (f) 2030, (g) 2040 and (h) 2050 at current real values. [115102]
§ Mr. RookerThe information is in the table.476W
Estimated future liability for basic state pension, state earnings-related pension (SERPS) and state second pension—
1999–00 prices
£ billion Year BSP SERPS State second pension Total 2001–01 33.7 4.9 0.0 38.6 2005–06 34.8 7.0 0.1 41.9 2010–11 37.5 8.6 0.9 46.9 2015–16 39.1 9.4 1.9 50.4 2020–21 40.4 9.7 3.1 53.1 2030–31 48.7 9.5 7.7 65.8 2040–41 52.2 6.9 12.9 72.0 2050–51 50.5 3.6 19.0 73.1 Notes:
1. The figures have been calculated based on the following assumptions:
SERPS expenditure is based on the assumption that State Second Pension is introduced from 2002 and so any SERPS expenditure after that date is on earlier accruals.
SERPS expenditure does not include the effects of the Inherited SERPS scheme and accompanying deferral announced on 15 March 2000.
State Second Pension expenditure assumes the scheme becomes flat rate from 2006 onwards.
From 2006 everyone aged under 40 and earning over £9,500 (in 1999 earnings terms) chooses to contract out of State Second Pension. Contracting out is based on the proposals contained in the current Bill.
2. Increases in contracted out rebates as a result of introducing State Second Pension and Stakeholder pensions are not included in the table.
3. The figures are consistent with those in the Government Actuary Department's report on the Child Support, Pensions and Social Security Bill 1999.
4. As the costs are based on long-term estimates and assumptions the figures given for early years, particularly 2000–01, are very broad brush estimates and are subject to uncertainty.
5. The figures are shown rounded to the nearest £0.1 billion and may not sum to totals due to rounding.
Source:
Government Actuaries Department