HC Deb 12 July 1965 vol 716 c1W
3. Mr. Hamling

asked the Minister of Pensions and National Insurance how many persons are exempted from the graduated pension scheme introduced by the previous Administration; and what is the actuarial calculation of the contribution they make to their basic pension under the scheme of National Insurance.

Mr. Pentland

About 4½ million employees are contracted out of the graduated pension arrangements. Their flat-rate National Insurance contributions are higher than those of employees who pay graduated contributions which are partly to support the flat-rate benefits. Contracted-out contributions are not based on the actuarial calculation of a separate pensions element, but, with other National contributions, are set at a level estimated to be sufficient to keep the total income and expenditure of the National Insurance scheme roughly in current balance.

4. Mr. Hamling

asked the Minister of Pensions and National Insurance what is the total amount paid in by contributors to the National Insurance Fund under the graduated scheme of pensions introduced by the previous Administration; how much has been paid out in graduated pensions since the scheme's inception; and what use has been made of the balance of their contributions.

Mr. Pentland

Up to 31st March, 1965, it is provisionally estimated that £837 million had been paid in graduated National Insurance contributions and that rather more than £1½ million had been paid out in graduated pensions. On the last part of the Question, I would refer my hon. Friend to my reply of 5th July to my hon. Friend the Member for Faversham (Mr. Boston).

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