Child Support, Pensions and Social Security Bill
Baroness Hollis of Heigham (Parliamentary Under-Secretary, Department of Social Security; Labour)
Except, my Lords, that current taxpayers have to fund at an additional cost the pensions of a previous generation which has not in turn funded other people to the same extent. That is the definition of a pay-as-you-go scheme. It is paid for in a different way. As regards a state second pension, there is not the advantage of an employer's contribution, which is available in occupational pensions or in some cases--I hope in money purchase pensions--of contributions along with the recycled rebates and the person's own contributions.