§ Mr. WebbTo ask the Secretary of State for Work and Pensions which categories of contracted out rebates are(a) paid out in tip form of reductions in the rate of national insurance contributions payable by an employee or employer and (b) paid directly into pension funds. [170980]
§ Malcolm WicksFor Defined Benefit Occupational Schemes, the whole of the contracted-out rebate is paid through a reduce ion in the National Insurance contribution. For Defined Contribution Occupational Schemes, part of the contracted-out rebate is paid as a reduction in the National Insurance contribution and part is paid by the Inland Revenue direct to the scheme at the end of the relevant tax year. For Appropriate Personal Pensions Schemes (the term applied to personal pension schemes that can be used to contract out), the whole of the rebate is paid by the Inland Revenue direct to the scheme at the end of the relevant tax year.