HC Deb 20 December 2000 vol 360 cc224-5W
Mr. Butterfill

To ask the Secretary of State for Social Security what plans the Government have to change the 9 per cent. cap on SERPS pension rebates. [143365]

Mr. Rooker

The cap on age-related rebates to those in Contracted-out Money Purchase Schemes and Appropriate Personal Pensions is one of the issues my hon. Friend the Secretary of State will address in his report on the level of rebates for the five years beginning April 2002 which will be published next year.

Mr. Butterfill

To ask the Secretary of State for Social Security what assessment he has made of the effect of the 9 per cent. cap on the contracting out decisions of people from SERPS. [143366]

Mr. Rooker

Age-related National Insurance rebates to members of Contracted-out Money Purchase Schemes and to Appropriate Personal Pensions are currently capped at 9 per cent. of earnings between the Lower and Upper Earnings Limits to restrain the costs to public finances. At that level it enables most people who were already contracted-out when age-related rebates were introduced to continue to stay in their pension scheme.