HC Deb 17 July 1961 vol 644 c91W
10. Mr. G. M. Thomson

asked the Minister of Pensions and National Insurance if he is aware that women teachers over the age of 60 years and men teachers over the age of 65 years are not allowed to contract out of the graduated part of the National Insurance Scheme and are thus losing a portion of their pension rights; and if, in view of the importance of encouraging teachers to remain at school, he will introduce amending legislation to remedy this situation.

Mr. Boyd-Carpenter

Under the National Insurance Act, 1959, no one can be contracted-out for the first time when over pensionable age, but people already contracted out remain so while continuing in that employment up to the ages at which they cease to contribute. In addition any graduated contributions paid rank for additional retirement pension under the normal rules. I have no proposals for amending legislation on this.

13. Mr. Gourlay

asked the Minister of Pensions and National Insurance what provision is made to detect and adjust irrelevant deductions of graduated pension contributions prior to the end of a contribution year.

Mr. Boyd-Carpenter

The collection of graduated contributions through the P.A.Y.E. system enables the employer to rectify erroneous deductions during the current year by refund to, or collection from, the employee and adjustment of subsequent payments to the collector of taxes. My inspectors are visiting employers to check that they are applying the scheme correctly and will require employers to correct any errors they discover. I am glad to say that in general the arrangements for the collection of graduated contributions are working well, and I am very grateful to employers for the care and trouble which they have taken.