asked the Secretary of State for Social Services if he will provide estimates, at 1984–85 prices, of projected expenditure on the state earnings-related pension scheme in 1995 to 1996, 2005 to 2006, 2023 to 2024 and 2033 to 2034 if the proposals in the Social Security Green Paper are implemented.
I shall let the hon. Member have a reply as soon as possible.
asked the Secretary of State for Social Services what are his proposals regarding the preservation of pensions already earned under the state earnings-related pensions scheme regarding (a) the uprating formula to be used, (b) the accrual rate to be used, (c) the retention of the best 20 years formula and (d) the arrangements contracted out schemes will be expected to have in order to preserve guaranteed minimum pensions.
The Green Paper on Reform of Social Security makes clear the Government's commitment to honour all entitlements earned in the state earnings-related pension scheme. Equally, schemes which have been contracted-out will be required to secure all accrued rights to guaranteed minimum pensions. Detailed arrangements for achieving these objectives are among the matters for consideration during consultations on the Green Paper.
asked the Secretary of State for Social Services what, in the light of the proposals to abolish the state earnings-related pension scheme for all who are more than 15 years from retirement, are his proposals for the percentage rebate on national insurance contributions to be given to occupational pension schemes to cover the cost of their continued contracted-out obligations to older workers; what assessment he has made of the extent to which his proposals will cover the cost of these obligations; and if he will make a statement.
Paragraphs 1.62 to 1.64 of chapter 1 in volume 2 of the Green Paper on the Reform of Social Security set out the Government's proposals for the structure of national insurance contributions from 1987–88 onwards. Implications for schemes which continue to provide contracted-out occupational pensions for older workers is one of the issues to be considered during consultations on the Green Paper.
asked the Secretary of State for Social Services what estimate he has made, in the light of his proposals to abolish the state earnings-related pension scheme for all who are more than 15 years from retirement, of the number of occupational schemes which may seek to contract back in before April 1987, and of the amount of money that will thereby be withdrawn from availability for investment in the financial markets by the pension funds concerned; and if he will make a statement.
No estimates have been made of the kind requested. Consultations with pensions interests on the Green Paper will enable them to indicate the reactions of contracted-out schemes to the proposals.
asked the Secretary of State for Social Services what is the basis for his statement that it is now expected that there will be three million more pensioners at the end of the century than was predicted in 1975.
In my right hon. Friend's statement on 3 June at column 37, on publication of the Green Paper on Reform of Social Security, he said:
The population projections made in 1974 only went as far as 2013. The Green Paper gives projections to 2033–34."The analysis undertaken during the review has shown that the number of pensioners for whom we will eventually need to provide is 3 million greater than was recognised in 1974 and 4 million higher than it is today"—[Official Report, 3 June 1985; Vol. 80, c. 37.]