§ 6. Mr. Hall-Davisasked the Chancellor of the Exchequer if he will review the revenue rules for occupational pension schemes so as to enable increased pension provision to be made for older employees declared redundant.
§ Mr. Maurice MacmillanThe Revenue rules for occupational pension schemes already permit proportionate pension benefits to be paid to an employee who retires for any reason up to 10 years before the normal retirement date. Additional payments to an employee by way of compensation for redundancy ought to be kept separate from schemes designed to provide retirement benefits.
§ Mr. Hall-DavisBut does my hon. Friend realise that it is not possible to give an older man who is declared redundant a full two-thirds pension unless he has 40 years' service, whereas a man retiring on the normal retirement date, under the rules of the schemes, can be given a two-thirds pension after 20 years' service and under the welcome new code after 10 years' service, even though he may be younger than the man declared redundant?
§ Mr. MacmillanI thank my hon. Friend for what he said. I will look into the matter and get in touch with him.