§ Mr. Andrew MacKayasked the Secretary of State for Social Services whether he has decided on the circumstances in which the 2 per cent. incentive payment under the Social Security Act 1986 will be withheld from a personal pension held by someone who was previously in an occupational pension scheme.
§ Mr. FowlerIn draft regulations which are being issued for consultation today, we propose that the 2 per cent. incentive payment should not be made to a personal pension held by an employee who, without changing his employer, has left an occupational pension scheme which is contracted out of the State earnings-related pension scheme, after at least two years of membership. The incentive payment will be withheld if the only reason for the employee no longer being in the occupational scheme, when the necessary information is given to the Department by his employer, is that he chose to opt out.