§ Mr. EdwardsTo ask the Chancellor of the Exchequer if part-time employees or ex-employees who have been awarded backdated access to their occupational pension schemes, will be permitted to take the relevant tax relief for the year in which the contribution applied; and if he will relax sections 592 and 594 of the Taxes Act 1988 to permit such persons to make a one-off tax-free contribution of greater than the annual permitted amount. [13652]
§ Ruth KellyPart-time employees have always been able to join and contribute to tax approved pensions schemes on the same basis as other employees. Any restriction on the participation of part-time employees in an occupational pension scheme is as a result of scheme rules.
It is up to employers and employees to settle how to give part-timers' rights to retrospective membership in occupational pension schemes, or agree equivalent compensation. In such cases there are no limits on the amounts of contributions which employers and employees 530W may make to defined benefit occupational pension schemes. Employee contributions of up to 15 per cent. of the pay of the year of payment of contributions qualify for tax relief, as do all employer contributions.