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Pensions (Cross-Border Activities)
Mr. Weir: To ask the Secretary of State for Work and Pensions what guidelines for co-operation between supervisors in regulating cross-border pension activity have been agreed with other EU states on a multilateral basis. [88606]
James Purnell: The guidelines for co-operation between supervisors in regulating cross-border pension activity are contained within the "Protocol relating to the collaboration of the relevant competent authorities of the member states of the European Union in particular in the application of the Directive 2003/41/EC of the European Parliament and of the Council of 3 June 2003 on the activities and supervision of Institutions for Occupational Retirement Provision operating cross-border". The protocol was adopted by the supervisory authorities of all the EU member states on 22 February 2006. For the UK, the relevant authority is the Pensions Regulator, a non-departmental public body responsible for the supervision of work-based pension schemes within the UK.
Mr. Weir: To ask the Secretary of State for Work and Pensions what authorisation and approval is required if a pension scheme wishes to engage in cross-border activity with other EU member states. [88607]
James
Purnell: If a pension scheme wishes to engage in
cross-border activity with other EU states, it must first be authorised
(a general authorisation to accept contributions from European
employers) and then approved (approval with regard to a specific
European employer) by the Pensions Regulator. The specific procedure
which schemes must follow is detailed in sections 287-289 of the
Pensions Act 2004. The
documentation schemes are required to produce in order to be authorised
and approved is contained within the Occupational Pension Schemes
(Cross-border Activities) Regulations 2005 (SI 2005/3381). Further
guidance on making applications for authorisation and approval to
operate cross-border can be obtained via the Pensions Regulator
website:
www.thepensionsregulator.gov.uk/trustees/crossBorder/index.aspx
Pensions White Paper
Mr. Philip Hammond: To ask the Secretary of State for Work and Pensions what definition he uses of ‘the long term’ on page 110 of the White Paper ‘Security in Retirement, Towards a New Pensions System’. [77994]
James Purnell: Expenditure projections in the White Paper “Security in retirement: towards a new pensions system” assume that the standard Guarantee Credit is uprated by earnings throughout the period to 2050.
Mr. Philip Hammond: To ask the Secretary of State for Work and Pensions if he will estimate the savings that will be realised from the reforms to (a) the state second pension and (b) savings credit under the proposals in the White Paper “Security in Retirement: Towards a New Pensions System” in each year from 2008 to 2050. [78002]
James Purnell: The White Paper “Security in Retirement: Towards a New Pensions System” presents a coherent, interlinked and comprehensive package of reforms. As such it can be misleading to consider the impact of an individual measure in isolation. Each component needs to be considered alongside the other reforms introduced.
Under our reforms, more people will be getting state pensions based on their national insurance records, and there will be a more generous basic state pension due to the restoration of the earnings link. This provides a solid foundation for private saving. Incentives are further enhanced by reducing the growth of the savings credit.
The White Paper also contains measures to simplify the state second pension, whereby it will gradually become a flat-rate top-up to the basic state pension. Access to the state second pension will be widened, as more workers, carers and parents start to become entitled.
The following tables contain information on the additional costs arising due to the proposed reforms to the state second pension and to the savings credit as set out in the White Paper.
Table 1 shows additional projected state second pension expenditure following reform, compared to previous policy—where it would have become flat-rate by around 2056, credits were available to those caring for children aged under six, and the ability to contract out into DC schemes continues.
The second column shows the extra cost which would be incident if the state second pension did not become flat-rate in accrual by 2030.
| Table 1: Cost of state second pension reforms | ||
| £ billion, in 2006-07 price terms | ||
| Total cost of state second pension reforms | Further costs if accelerated flat-rating excluded | |
Table 2 shows the additional cost under the proposed pension credit reforms, compared to the baseline assumption that the guarantee credit is earnings uprated until 2008 (the Government’s previously announced intention), and price uprated thereafter.
The White Paper package means that everyone should have the opportunity to save on the basis of a firm foundation from the state, with confidence that they will see the benefits from their private saving. Earnings-linking the basic state pension, and arresting the spread of the savings credit up the income distribution by uprating the maximum with earnings from 2008 and with prices from 2015, are important elements in that package. The second column shows the extra costs which would be incident if these reforms to the savings credit were excluded.
Mr. Philip Hammond: To ask the Secretary of State for Work and Pensions if he will place in the Library the data which supports the figures given in figure 9 of the White Paper “Security in retirement, towards a new pensions system” for each year between 2020 and 2050. [78005]
James Purnell: The information requested has been placed in the Library.
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