§ Mr. Kenneth Clarkeasked the Secretary of State for Social Services whether his Department is under any obligation to, and will, refund unnecessary extra national insurance contributions paid by employees whose employers submitted late applications to contract out once the Occupational Pensions Board has issued a contracting-out certificate backdated to 6th April 1978; and whether he anticipates that any employees will not eventually receive a full refund of such excess and unnecessary payments.
§ Mr. OrmeWhere an employer's application to contract out from 6th April 1978 was not submitted by 23rd March 1978 and in consequence higher—non-contracted-out—rate contributions have to be paid pending the issue of the contracting-out certificate, the refunds which become due to employees where a certificate is made effective from 6th436W April 1978 will be paid by their employer. It is normal practice for employers to refund overpaid contributions to their employees during the currency of the tax year, but where, exceptionally, they are unable to do so my Department will make the necessary refund upon application within the statutory time limit of six years. I do not anticipate that any employees will not eventually receive a full refund of such over-deductions.