Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, pursuant to the Answer of 4 July 2018 to Question 160779, how many (a) men and (b) women in private sector pensions schemes were contracted-out between 1978-79 and 1987-88; and how many of those (i) men and (ii) women (A) have reached state retirement age since the introduction of the single tier pension and (B) are still to reach state retirement age.

Under the old State Pension, there was a basic State Pension, based on the number of years of employment, and an earnings-related element (additional State Pension). From 1978 until April 2016 it was possible for employees and employers to contract-out of the additional State Pension (SERPS and, from 6 April 2002, State Second Pension) on condition that the employer provided a pension of, at least, a statutory minimum.

Prior to 1988 contracting-out was restricted to Defined Benefit schemes and there was no individual choice. Until April 2012 it was possible to contract-out by joining a Defined Contribution workplace pension scheme or a personal pension scheme which met certain conditions instead. Contracting-out for salary-related Defined Benefit schemes remained open until 5 April 2016. Contracted-out through a salary-related workplace pension scheme meant that the employee and employer paid lower National Insurance contributions and, in doing so, the employee would receive a lower (or no) additional State Pension. However, they would be receiving a workplace pension instead.

An individual’s basic State Pension is not affected. Separate rules apply if an individual is a member of a salary-related pension scheme before 6 April 1997. These rights, known as the Guaranteed Minimum Pension, cannot be taken before age 65 (men) or 60 (women). Contracting-out finally ended on 6 April 2016, and this means that all employees now pay the same rate of NI.

The specific information requested is not readily available and to provide it would incur disproportionate cost.