HC Deb 04 December 1987 vol 123 cc730-1W
Mr. Page

To ask the Chancellor of the Exchequer what rate of employer contribution the Government treat as appropriate for public service employees who choose personal pensions, once these are available.

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.