Pensions

To ask the Secretary of State for Work and Pensions how many defined benefit schemes reduced the cap on indexation of pensions in payment from 5 per cent. to 2.5 per cent. for accruals from April 2005; and how many active members there are in aggregate in these schemes. (141526)

The information is not currently available. Information on the indexation of pensions in payment after April 2005 was requested in the Office for National Statistics’ 2006 Survey of Occupational Pension Schemes, work on which is continuing.

To ask the Secretary of State for Work and Pensions if he will break down the figures in table 7.12 of the Family Resources survey to show the proportion of working age private sector employees with pension provision in 2005-06; and what the comparable figures were for each year since 1996-97. (141537)

This information is not available.

The Family Resources Survey does not collect information about employment sector. Employees are asked to identify the main activity at the place where they work but these broad industry classifications are not robust enough to provide an accurate breakdown of public and private sector employment.

To ask the Secretary of State for Work and Pensions (1) what proportion of (a) schemes and (b) members included in the sample of defined benefit schemes analysed in the Purple Book were in the public sector; (141541)

(2) if he will publish the figures which form the basis of chart 3.11 of the Purple Book indicating how many defined benefit schemes in the sample closed in each year since 1995.

This is not a matter for the Secretary of State.

The Purple Book was a joint study by the Pensions Regulator and the Pension Protection Fund (PPF). The statistics were generated through analysis of information collected by the Pensions Regulator from pension scheme returns. Some of this information was further processed by the PPF in collaboration with the Government Actuaries’ Department so that valuation information was as at a common date.

To ask the Secretary of State for Work and Pensions if he will place in the Library the figures illustrated by the graph in figure 8 of Security in retirement: towards a new pension system. (141548)

The following table gives the updated numbers from Figure 8 of Security in retirement: towards a new pensions system. Since the White Paper these numbers have been updated to 2007-08 earnings terms and include state second pension simplification policy.

*Income for a median earner retiring in 2050-53 (current system/reform)*
(£)
	Basic state pension	State second pension	Pension credit	Private pension	Total
Reform with saving	81	71	0	86	237
without saving	81	71	0	0	151
Current with saving	36	73	38	37	184
without saving	36	73	53	0	162
Notes: In 2007-08 earnings terms, income shown before tax. Assumes a median earner works from age 25 to SPA, retiring in 2050 at age 65 under the current system and at age 68 in 2053 under reform. Under the current system it is assumed that saving is five per cent of salary between the Primary Threshold and the UEL into a stakeholder pension, with a 1.5 per cent. annual management charge. This is equivalent to employee-only contribution rate into the new personal accounts. After reform it is assumed that saving is 8 per cent. of salary between the primary threshold and the UEL into a personal account (which includes 3 per cent contribution, and has 0.5 per cent. annual management charge). Amounts may not sum due to rounding. Source: DWP modelling

Volume 461: debated on Monday 18 June 2007