Age related rebates for contracted-out personal pension schemes and money purchase occupational schemes were introduced in April 1997. The details are in the Secretary of State's report of March 1996, which forms part of the “Occupational and Personal Pension Schemes Review of Certain Contracting-out Terms, Cm. 3221” This approach to age related rebates has continued in subsequent rebate reviews.
(2) what savings are expected to result for the Exchequer from the decision to cap contracted-out rebates for personal pensions and money purchase occupational schemes (a) at 7.4 per cent. rather than the previous cap level of 10.5 per cent. and (b) at 7.4 per cent. rather than at the levels recommended by the Government Actuary in each year from 2007-08 to 2012-13; and if he will make a statement.
The effect on national insurance revenues arising from recent changes to age-related rebate rates is broadly neutral over the longer term.