§ Kate HoeyTo ask the Secretary of State for Social Security if she intends to change the national insurance contribution contracting-out rebates. [24282]
§ Mr. DenhamI announced on 4 December that I was asking the Government Actuary for this views on the level of the National Insurance contracting-out rebates. He has now responded.
I have considered both the Government Actuary's advice and the impact of trends in the pensions industry on the resources available to the National Insurance Fund. From April 1999, the first opportunity available, I propose to:
increase the age-related rebates for Appropriate Personal Pensions. The rebate rate at the youngest ages will rise from 3.4 per cent. to 3.8 per cent. with proportionately smaller increases at other ages, with the cap remaining at 9 per cent.; andadjust the rebate for contracted-out money purchase schemes by replacing the current loading for expenses with the same as that contained within the rebate for contracted-out salary-related schemes.I will lay an Order outlining these changes before both Houses in due course.
A copy of the Government Actuary's report has been placed in the Library of both Houses.