§ Lynne JonesTo ask the Secretary of State for Work and Pensions (1) what estimate he has made of the number of integrated private schemes which take into account increases to the state pension after retirement age when calculating the amount of occupational pension payable; [8408]
(2) if the Government will introduce similar legislation to that enacted in Ireland to prohibit integrated private schemes which take into account increases to the state pension after retirement age when calculating the amount of occupational pension payable. [8409]
§ Mr. McCartneyThe Government have no plans to introduce legislation on integration in the manner described because there is no evidence that UK occupational pension schemes take increases in the state pension into account once state pension age has passed and the scheme member's pension is in payment.
It is estimated that in 1995 there were approximately 7,200 private sector defined benefit occupational pension schemes which operated integration of some form to allow for the receipt of state pensions.
In general, the integration adjustment is applied at the time the pension is calculated at the date of retirement or at the date state pension age is reached. The resultant pension is then subject to increases according to the scheme rules. These rules also protect against the level of pension from being reduced once it has gone into payment.