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Occupational Pensions

Volume 461: debated on Thursday 21 June 2007

To ask the Secretary of State for Work and Pensions pursuant to the answer of 19 February 2007, Official Report, columns 364-65W, on pensions, (1) how many employees benefiting from combined employer and employee contributions in excess of (a) £3,000 and (b) £5,000 belong to (i) private sector defined benefit or hybrid schemes that are open to new members, (ii) private sector defined benefit or hybrid schemes that are closed to new members and (iii) private sector defined contribution schemes; (141438)

(2) whether the recorded contribution levels exclude the value of contracted-out rebates; and how many employees in each contribution band were contracted out;

(3) how many employees benefiting from combined employer and employee contribution in excess of £5,000 work in (a) the private sector and (b) the public sector;

(4) if he will expand the table to show the number of employees with combined employer and employee contributions that are (a) less than £1,000, (b) £1,000 to £1,999, (c) £2,000, to £2,999, (d) £3,000 to £3,999, (e) £4,000 to £4,999, (f) £5,000 to £9,999 and (g) £10,000 or more.

The table presented in the answer of 19 February 2007, Official Report, columns 364-65W, showed information derived from a 2005 dataset. The analysis has been repeated using the latest available 2006 data and the results are presented in table 1.

Table 1: Number of employees by level of combined employer and employee pension contributions: Great Britain, 2006

Total contribution

Number of employees (million)

Less than £5,000

7.9

£5,000 to £5,999

1.1

£6,000 to £7,499

1.2

£7,500 to £9,999

0.9

Note:

The figures provided exclude the value of contracted-out rebates

Source:

Annual Survey of Hours and Earnings, 2006

The following tables present additional analyses, consistent with the results presented in table 1:

Table 2: Number of private sector employees by level of combined employer and employee pension contributions and type of scheme: Great Britain, 2006

Number of private sector employees (million)

Total contribution

Defined benefit

Defined contribution

£3,000 to £4,999

0.6

0.2

£5,000 or more

1.2

0.3

Notes:

1. No information is available about scheme status.

2. No information about employment sector was available for a further 0.6 million members of defined benefit schemes and 30,000 members of defined contribution schemes

Source:

Annual Survey of Hours and Earnings, 2006

Table 3: Number of employees by level of combined employer and employee pension contributions and contracted out status: Great Britain 2006

Total contribution

Number of employees contracted out (million)

Less than £5,000

5.0

£5,000 to £5,999

1.0

£6,000 to £7,499

1.1

£7,500 to £9,999

0.8

Note:

Contributions exclude the value of contracted-out rebates.

Source:

Annual Survey of Hours and Earnings, 2006

Table 4: Number of employees with combined employer and employee pension contributions in excess of £5,000 by employment sector: Great Britain 2006

Number of employees with total contributions in excess of £5,000 (million)

Private sector

1.8

Public sector

2.0

Note:

No information about employment sector was available for a further 0.4 million employees

Source:

Annual Survey of Hours and Earnings, 2006

Table 5: Number of employees by level of combined employer and employee pension contributions: Great Britain, 2006

Total contribution

Number of employees (million)

Less than £1,000

1.4

£1,000 to £1,999

1.8

£2,000 to £2,999

1.8

£3,000 to £3,999

1.6

£4,000 to £4,999

1.3

£5,000 to £9,999

3.3

£10,000 or more

0.9

Notes:

1. All figures are estimates and are taken from the Annual Survey of Hours and Earnings (Office for National Statistics). 2006 is the latest year for which the data are available. The coverage of the survey is Great Britain.

2. The answers only include employees aged 16 to state pension age.

3. Total pension contributions include both employee and employer contributions.

4. No information is available separately on hybrid schemes.

5. No information is available about scheme status (schemes that are open or closed to new members).

6. The answers in tables 3 to 5 cover: Occupational pension schemes (including defined benefit schemes and defined contribution schemes), group personal pension schemes, stakeholder pension schemes and those where the pension category was unknown.

7. The figures provided exclude the value of contracted-out rebates.

8. Individuals who are members of a pension scheme but where there is no information about employer or employee contributions have not been included.

Source:

Annual Survey of Hours and Earnings, 2006