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Pensions

Volume 973: debated on Tuesday 13 November 1979

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asked the Secretary of State for Social Services what percentage of the present retirement pension for the payment to a married pensioner and to a single pensioner can be claimed to be attributable to contributions made during the lifetime of the pensioner by way of national insurance contributions; and what percentage has to be added from taxation.

The national insurance fund runs on a "pay as you go" basis and the current income of the fund broadly meets its current expenditure. Contributions are not related to the level of a subsequent pension but go towards meeting current expenditure on all benefits, including retirement pension and administrative costs. The income of the fund includes a supplement from the Consolidated Fund amounting to 18 per cent. of the contribution income.