§ 73. Mr. FallonTo ask the Secretary of State for Social Services what incentives will be provided for people to join a personal pension scheme as a result of the Social Security Act 1986.
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§ Mr. PortilloFrom 1 July 1988 it will be possible to contract out of the state earnings-related pension scheme through a personal pension from a scheme approved by the Occupational Pensions Board. Personal pensions will attract minimum contributions paid by the Department. These will be made up of a partial rebate of national insurance contributions and, until April 1993, a special incentive payment. In most cases the payments by the Department will include tax relief on the employee's share of the minimum contribution. People taking out a personal pension before 6 April 1989 will be able to backdate membership to 6 April 1987 and claim an extra year's minimum contributions, including the incentive.