Up-rating report 2021 바카라 사이트� focus on the National Insurance Fund
The 바카라 사이트 Actuary has published the Up-rating Report 2021 on the National Insurance Fund. It will be considered by MPs as they scrutinise draft government legislation.
The 바카라 사이트 Actuary바카라 사이트檚 annual report on the National Insurance Fund (NIF) has been published. The report:
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provides advice to MPs as they scrutinise the government바카라 사이트檚 draft legislation for up-rating social security benefits and pensions and updating National Insurance Contribution (NIC) terms
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projects contribution income, benefit payments and the balance of the NIF over the coming financial years
Coronavirus impact
The coronavirus pandemic is impacting the NIF in several ways:
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increased levels of unemployment and lower salaries (for example where employees are furloughed) are reducing income to the NIF with receipts in 2020-2021 expected to be 拢5.4 billion lower compared with the previous (pre-pandemic) projection last year
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payments of working age benefits are increasing while 바카라 사이트榚xcess deaths바카라 사이트� caused by the pandemic are reducing payments of pensioner benefits
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an unusual pattern of average earnings (ie a sharp drop followed by an expected recovery) is projected to cause state pension payments from the NIF to be around 拢1 billion per year higher from 2022 (than with a more even progression of average earnings)
Headline results
Allowing for the impact of the coronavirus pandemic the headline results are that:
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income is projected to exceed expenditure by 拢1.3 billion increasing the NIF balance to 拢40.8 billion by 31 March 2022
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costs of the proposed changes to NICs to be paid from April 2021 are projected to be 拢0.2 billion
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costs of the proposed increases to benefits to be paid from April 2021 are projected to be 拢2.0 billion
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the NIF is not expected to need any top-up from HM Treasury over the next 5 years
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5-year projections show the NIF balance decreasing in each year from the end of 2023
All the headline results are sensitive to future economic conditions.
Remote working
In line with government guidance GAD staff have been working from home during the pandemic. Bringing together a remote team to deliver this report added a new dimension to this annual project.
GAD Senior Consulting Actuary Chris Morley led the project. He said: 바카라 사이트淧eople from across the department have overcome remote working barriers and carried out the complex modelling underpinning this report in a collaborative and effective manner.
바카라 사이트淚바카라 사이트檓 proud to have led this team and they have produced this report on time and on budget in challenging circumstances.바카라 사이트�