Below is the text of Mr Major’s written Parliamentary Answer on SERPS on 9th March 1987.
Mr. Meacher Asked the Secretary of State for Social Services if he will set out combined employer and employee national insurance contribution rates for financing the state earnings-related pension scheme for each five years up to 2050, on assumptions of both a price-indexed and earnings-indexed annual increase in the basic retirement pension, and assuming a growth rate in the economy of (a) 1.5 per cent. and (b) 3 per cent. per year; and if he will provide these tables on the basis that (i) the state earnings-related pension scheme is unchanged and (ii) the state earnings-related pension scheme is amended in accordance with the Social Security Act 1986.
Mr. Major I refer the hon. Member to my reply to him on 8 April 1986, at column 86 and to table 5 in the Government Actuary’s report on the Social Security Bill 1986 (Cmnd. 9711). The estimates of combined national insurance rates published in these were based on assumptions of real earnings, and not on growth in the economy, as real earnings is the relevant economic factor. Additional projections at five-yearly intervals could be produced only at disproportionate cost.