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17 Mar 2003 : Column 604W—continued
Pension Schemes
Mr. Tynan: To ask the Secretary of State for Work and Pensions when he expects the Occupational Pension Schemes (Transfer Values) (Amendment) Regulations 2003 to be laid before Parliament; and what steps he has taken to ensure that the interim regime adopted under Update 1—Calculation and payment of cash equivalent transfer values, issued by the Occupational Pensions Regulatory Authority, is as brief as possible. [102444]
Mr. McCartney: Amendments to pensions regulations must be issued in draft for consultation. The draft Occupational Pension Schemes (Transfer Values) (Amendment) Regulations 2003 were issued for consultation on 28 January and responses required by 28 March. We will endeavour to bring these changes into effect as soon as possible after responses have been considered and any necessary redrafting in the light of them completed.
Mr. Tynan: To ask the Secretary of State for Work and Pensions what steps he has taken since the publication of "Update 1—Calculation and payment of cash equivalent transfer values" by the Occupational Pensions Regulatory Authority to (a) ensure that pension scheme members' rights under the (i) Pension Schemes Act 1993 and (ii) Pensions Act 1995 are protected, (b) monitor the numbers and circumstances of scheme members whose position may be adversely affected by the OPRA guidance and (c) ensure that the consultation being carried out in respect of the draft Occupational Pension Schemes (Transfer Values) (Amendment) Regulations 2003 is not prejudiced by OPRA's interim guidance pending the proposed introduction of the regulations; and if he will make a statement. [102472]
Mr. McCartney: The aim of both update 1 and the amendments to the regulations is to maintain fairness between those who transfer out of schemes and those who remain. Reports in the press imply that the measures would lock individuals into their pension schemes. That is not true.
The Occupational Pensions Regulatory Authority (OPRA) will not be preventing members from transferring out of pension schemes, nor are they endorsing such an approach. OPRA have made it clear that it is up to trustees to decide whether to delay quotes of transfer values. In doing so trustees will want to take into account the funding position of the scheme and the effect of transfers on members who remain in the scheme. The measures are short term and will only apply until the amended regulations come into force.
There is no central record of members who apply for a transfer value and it is therefore not possible to monitor those who may be affected by OPRA's guidance. It is important that the calculation of transfer values is fair to all, to those who leave and those who stay. If a scheme is underfunded and an unreduced transfer value is taken, it affects all members who remain in the scheme. On the whole, it is likely that more members will benefit from OPRA's measures than be adversely affected.
The timing and process of the consultation on the regulations is not affected by OPRA's interim guidance; how respondents reply to the consultation is of course a matter for them.
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Pensions
Sir Archy Kirkwood: To ask the Secretary of State for Work and Pensions what steps he is taking to prevent delays when the Pension Service start supplying local authorities with the assessed income figure for claimants. [100747]
Mr. McCartney: From 6 October 2003, the existing electronic interface between The Pension Service and almost all local authorities will be enhanced to include the Pension Credit assessed income figure. For those local authorities without electronic interface, information will be passed from The Pension Service to the local authority by paper. This information will normally be supplied to the local authorities within 24 hours of the award or change of award decision for Pension Credit being made.
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Officials are in regular contact with the Local Authority Associations on the arrangements for Pension Credit and have conducted a series of national seminars for local authorities. In addition, a Pension Credit Handbook for all local authorities and their software suppliers is being produced.
Mr. Flight: To ask the Secretary of State for Work and Pensions (1) what the average contribution of SERPS per recipient as an addition to the basic state pension has been in each year since 1990; [99153]
- (2) what proportion of those retiring in each year since 1990 have retired with both the basic state pension and SERPS. [99154]
Mr. McCartney: The information is not available prior to 1995. However, such information in respect of those in receipt of a State Pension is set out in the following tables:
| Men aged 65 receiving both basic State Pension and additional State Pension (Thousand) | Men aged 65 in receipt of a State Pension (Thousand) | Percentage of men aged 65 receiving both basic and additional State Pension | Average weekly amount of additional State Pension paid to men aged 65 (£) | |
|---|---|---|---|---|
| 30 September 1995 | 206.5 | 220.2 | 94 | 16.25 |
| 30 September 1996 | 231.3 | 252.7 | 92 | 17.81 |
| 30 September 1997 | 219.6 | 247.6 | 89 | 19.58 |
| 30 March 1998 | 208.2 | 242.1 | 86 | 20.20 |
| 30 September 1999 | 203.1 | 240.9 | 84 | 24.01 |
| 30 September 2000 | 207.2 | 243.7 | 85 | 24.35 |
| 30 September 2001 | 207.1 | 246.9 | 84 | 24.69 |
| 30 September 2002 | 206.2 | 253.9 | 81 | 26.62 |
| Women aged 60 receiving both basic State Pension and additional State Pension (Thousand) | Women aged 60 in receipt of a State Pension (Thousand) | Percentage of women aged 60 receiving both basic and additional State Pension | Average weekly amount of additional State Pension paid to women aged 60 (£) | |
|---|---|---|---|---|
| 30 September 1995 | 113.6 | 199.8 | 57 | 9.85 |
| 30 September 1996 | 133.8 | 222.1 | 60 | 10.69 |
| 30 September 1997 | 138.0 | 226.9 | 61 | 11.38 |
| 30 March 1998 | 144.0 | 230.0 | 63 | 11.33 |
| 30 September 1999 | 142.2 | 230.0 | 62 | 13.54 |
| 30 September 2000 | 151.0 | 230.7 | 65 | 13.00 |
| 30 September 2001 | 147.5 | 220.5 | 67 | 13.35 |
| 30 September 2002 | 171.6 | 248.9 | 69 | 13.87 |
Notes:
1. Figures are in thousands, are rounded to the nearest hundred and are in cash terms.
2. Average amounts exclude people paid zero additional State Pension.
3. State Pension refers to those people who are in receipt of any component of the State pension.
Sources:
1. 5 per cent. sample from the Pension Strategy Computer System as at the date of extraction.
2. The source data used to extract the figures are subject to change if further relevant earnings are posted to the NI account.
Pensioners (North Yorkshire)
Hugh Bayley: To ask the Secretary of State for Work and Pensions what recent steps he has taken to improve the financial position of pensioners in North Yorkshire. [102637]
Mr. McCartney: Over 14,000 people in North Yorkshire benefit from the Minimum Income Guarantee and receive an average £43.08 a week. 116,200 pensioners have benefited from the above inflation increases in the State Pension. Additionally 128,240 received a Winter Fuel Payment of up to £200. Those pensioners in North Yorkshire eligible for Pension Credit stand to gain around £400 a year on average.
The creation of The Pension Service provides an ideal opportunity to further encourage pensioners to take up their entitlements. Not only are our customers being encouraged to claim when they ring their pension centre but we also have a network of local service teams throughout the country actively encouraging take up.
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There is a local service team of 10 staff covering the area of York and Selby, meeting customers in the community and actively encouraging take-up. They are developing advice and drop-in surgeries in partnership with other local organisations. For example, appointment surgeries at York District Hospital; a drop-in surgery held at the Guildhall, York, for an event in partnership with the Primary Care Trust and Staywarm as part of the 'Keep Warm Campaign', and a drop-in surgery used for a Winter Fuel event in partnership with the Energy Efficiency Unit.
- Source:
- Pension Strategy Computer System as at 30 September 2002.
- Income Support Quarterly Statistical Enquiry, November 2002
- Matching Intelligence Data Analysis Service Winter Fuel Payment 2001–02 exercise.
Smoking
Chris McCafferty: To ask the Secretary of State for Work and Pensions if he will introduce a levy on employers who permit smoking in the workplace. [99330]
Mr. Nicholas Brown: There are no current plans to do so. However, all employers have a duty under the Health and Safety at Work etc Act 1974 to protect the health, safety and welfare of their employees, and this duty includes any risks arising from passive smoking.
More specifically, the Workplace (Health Safety and Welfare) Regulations 1992 require employers to protect non-smokers from discomfort caused by tobacco smoke in rest rooms and rest areas. This means that employers must either provide separate rest rooms/areas for smokers and non smokers or prohibit smoking in rest rooms/areas.
The Health and Safety Executive has published free guidance which gives advice to employers on introducing effective smoking policies in the workplace.
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