§ Mrs. Beckett
To ask the Secretary of State for Social Security what are the latest estimates of the probable rates of contracted-out rebate for each quinquennium from now until the year 2018.
§ Mrs. Gillian Shephard
[holding answer 30 October 1989]: The Government Actuary estimates that, on the same assumptions as those set out in his report "Review of certain contracting out terms" (Cm. 110), in particular assuming that the weightings by age and sex remain the same, the contracted out contribution reduction in successive five year periods would be as follows:
Per cent. 1993–98 4.8 1998–2003 4.3 2003–08 3.9 2008–13 3.6 2013–18 3.5 2018 onwards 3.4
These figures assume that the 0.4 per cent. additional margin which has been included in the rebate of 5.8 per cent for 1988–93 will not be added in later periods. The gradually reducing level of the rebate reflects the declining proportion of those contracted-out who will be accruing guaranteed minimum pensions at an accelerated rate.