§ 9. Mr. van Straubenzeeasked the Secretary of State for Social Services how many employees in the United Kingdom are covered by pension schemes contracted out of the State scheme.
§ The Under-Secretary of State for Health and Social Security (Mrs. Lynda Chalker)The latest figures indicate that 11.8 million employees are members of occupational pension schemes and of these, over 10 million are in contracted-out employment.
§ Mr. van StraubenzeeIn the opinion of my hon. Friend, do those figures reveal that the contracted-out provisions have been a success and that a substantial number of people have obtained benefits under them outside the State system, many of which are better than those minima which they would otherwise have obtained?
§ Mrs. ChalkerYes. I am glad to affirm our continuing commitment to the contracted-out partnership. It is true that the contracted-out arrangements have been successful. The number now in contracted-out employment is far greater than envisaged when the legislation was placed on the statute book. In many instances those in contracted-out employment have a second pension which is of greater value, but as the State second pension scheme builds up over coming years it will be an essential part of the future provision for those in retirement.