§ Mr. Ian Stewartasked the Chancellor of the Exchequer whether, in view of the increasing incidence of managerial redundancies and the persistence of high rates of inflation, he will reconsider the salary limit, which was fixed in 1970, of £5,000 per annum above which the refund of occupational pension contributions is not permitted.
§ Mr. Robert SheldonNo; this would not be an appropriate way in which to deal with the problem of managerial or other redundancies. It is Government policy to encourage the preservation of pension rights and it would be inconsistent to relax the restraints on refunds of contributions for tax approval purposes at a time when those restraints are being
228Wstrengthened through the Social Security Act 1973, one of the provisions of which, when fully effective, will bar refunds of contributions except in the case of certain young people and those with only short service.