§ Paul FlynnTo ask the Secretary of State for Work and Pensions what is the weekly value of the state second pension in 2050 in the case illustrated in Figure 7.5 of the pensions Green Paper (Cm 5677); what it would have been under SERPS(a) as amended prior to April 2002 and (b) if the 20 best years provision had not been repealed; and what are the assumed earnings of the woman concerned. [89646]
§ Mr. McCartneyThe weekly value of the state second pension in the particular case illustrated is £67. The weekly value of SERPS as amended prior to April 2002 is £33. If the 20 best years provision had not been repealed, the weekly value of SERPS would have been £87.
It is assumed that the woman in question earns the average female full-time weekly wage when working full time (£383) and the average female part-time weekly wage when working part time (£144). She is assumed to work for 30 years, 17 of which are full-time.
The reason that the 20 best years provision in SERPS generates a higher pension than state second pension is that an example of someone with substantial full-time work at average earnings is used. State second pension has been designed to benefit lower earners and part-time workers who would generally receive far less from the 20 best years rule than from state second pension.