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Dept of Social Security

Answer

Mr. Mans: To ask the Secretary of State for Social Security if he will make a statement on survivors' benefits under basic pension plus. [21518] Mr. Heald: Funds of those in the new scheme who die before drawing any money purchase benefits{1} would be inherited in full by the surviving spouse, or the estate where there is no spouse. Some or all of these funds would have to be used by a surviving spouse to purchase an annuity, or income could be withdrawn. The state would also guarantee the basic pension rights of widows. In cases where the individual dies after purchasing an annuity, the surviving spouse would get an annuity equal to 50 per cent. of the annuity in payment to the deceased. Note: {1}Under basic pension plus, the £9 per week payments will always provide money purchase benefits. The payments on 5 per cent. of earnings between the lower earnings limit and the upper earnings limit for national insurance contributions purposes will also provide money purchase benefits, except in a contracted-out salary-related scheme--COSR. In the case of a COSR, the scheme will be required to provide a pension to a surviving spouse equal to half of the pension in payment to the member at the time of death. If death occurs before retirement, half the pension accrued by the member at the date of death would be payable to the surviving spouse.

Secondary information

Type

Written question

Reference

21518; 292 c905W

Session

1996-97

Subjects

Death Dependants Pensions Personal pensions Pension rights State retirement pensions Widowed people