HC Deb 28 February 1961 vol 635 cc1353-4
15. Vice-Admiral Hughes Hallett

asked the Chancellor of the Exchequer what changes are necessary in the conditions under which Civil Service pensions are granted in order to conform to the condition of full transferability required to make contracting-out of the Graduated National Insurance Pension Scheme lawful.

Mr. Selwyn Lloyd

None, Sir. Payments in lieu of contributions will be made to the National Insurance Fund in respect of those staff who leave contracted-out employment in the Civil Service without having their Civil Service pension rights preserved.

Vice-Admiral Hughes Hallett

Does that mean that civil servants who retire before they qualify for pension will, in effect, be contracted-in retrospectively? Can my right hon. and learned Friend say whether this arrangement is a special concession to the Crown as an employer, or whether it is in general application under the terms of the National Insurance Act?

Mr. Lloyd

As far as the second part of my hon. Friend's supplementary question is concerned, it is true that the same considerations apply to non-Civil Service pensions.