§ Mr. Brooke
The Social Security Act 1986 gives all employees a new right from 1 July 1988 to opt for personal pensions as an alternative to the state earnings-related scheme or an employer's scheme. The Act requires employers to make an employer contribution for personal pension optants, as part of their national insurance contributions, at a rate no less than the contracted-out rebate, which currently stands at about 4 per cent. of the individual's salary. The Government consider that an employer's contribution at that level would be appropriate for public service employees opting for personal pensions.