asked the Secretary of State for Social Services if he has yet decided the new terms for contracting-out to take effect from 6 April 1983.

Yes. After wide consultation and careful consideration of the many complex factors drawn to my attention in representations, I have decided that, with effect from 1983, the overall contracted-out national insurance contribution reduction should be abated to 6¼ per cent. from the existing 7 per cent. The reductions to normal class 1 contribution for contracted-out employments will be 2·15 per cent. for employees and 4·1 per cent. for employers. I have also decided to increase certain premiums payable by contracted-out occupational pension schemes to the NI fund when they "buy-back" into the State scheme. The size of the premium increases, which will be phased-in in five annual steps, will be calculated under a new formula, described in my report, which will take into account the performance of the investment markets.These are the only changes I am making and I have today laid before both Houses my reports on the statutory review of the terms under which members of occupational pensions schemes may be contracted-out of the earnings-related additional component of the State scheme. I have also laid reports by the Government Actuary, and draft statutory instruments to implement my decisions with effect from 6 April 1983.