HC Deb 17 February 1988 vol 127 c658W
Mr. Alfred Morris

To ask the Lord President of the Council what Exchequer contribution will be payable to a personal pension scheme in respect of a right hon. or hon. Member who elects to withdraw from the parliamentary contributory pension fund; and what is the current Exchequer contribution to the parliamentary contributory pension fund.

Mr. Wakeham

In a written answer to my hon. Friend the Member for Hertfordshire, South-West (Mr. Page) on 4 December 1987, column731, my right hon. Friend the Paymaster General explained that from July 1988 the Social Security Act 1986 will require employers to make a 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, and that the same approach should be followed with the parliamentary pension scheme. The Exchequer currently makes a contribution of 13 per cent. of salary to the parliamentary contributory pension fund.

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