Clause 11 - Reduced rate elections: effect on section 4 pensions

Part of Pensions Bill – in a Public Bill Committee at 4:30 pm on 2 July 2013.

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Photo of Gregg McClymont Gregg McClymont Shadow Minister (Work and Pensions) 4:30, 2 July 2013

I thank the Minister for that explanation. I was struck by what he said about the 35-year period. The Opposition do not oppose the clauses and welcome the Government’s recognition of the explicit contract between the individual and the state, which is the legacy of a very different social and employment environment. Has the Minister estimated how many individuals will have paid the reduced rate election outside of the 35-year period that the Government have set? Does he think that is a significant issue?

Generally, we welcome the Government’s approach. The Minister is right that it adds a little complexity. Complexity is to be deprecated where it can be avoided, a point that he has made on a number of occasions, but like him we think that, given the circumstances in which the reduced rate election was paid, it makes sense to proceed as the Government suggest. We support the clauses; I simply ask whether there are any issues with taking into account only those people who have made reduced rate election contributions within the previous 35 years.