Our Ref: DR 14/5091/77

10 April 1978

Dear Kr. Hartia,

Thank you for your letter of 14 February 1978, forwarding a copy of your draft report on the proposed voluntary contributory benefit scheme, We have considered 16 manirish the background of public response to the Green Paper on Social Security Development, and should be grateful

Lestion and further advise on the following points:

join

(a) le note your comment that, in view of uneerhainties

of the age distribution of those who opt the scheme, and of the incidense of sigh olains, it has proved difficult so asti cont of he proposed banafiis, Beverth you have concluded that sickness benefit (of half the waruge monthly pay in the 12 months preceding sickness) sould be payable during the second, third and fourth mantha of sickness, possibly even the fifth and sisth months, plu a death benefit of six months! pay, on the basis of a 25 contribution from employers. would like to know the semimștiama which you have used in your oestings, as to the mumber and age of participants, rates of aicinano and death plains, até e

(b) Contructing-outi

the force of your the administrative

Ingout. öyers. We have

If

complexities of allowing som consera is shared by local a therefore concluded that, en balance, it would preferable get to allow contracting-out. possible, we would like to allow employers thi right to adjust benefits payakle under existing private morames to take account of their addi CONNEŽ MAMÜR under the centrally administered voluntary contributary scheme, sinoë wë seg no justification Ing compelling employers to pay this applies particularly to the Civil Serv where benefits are kirende

We also propose to pe enter all his mployed their contributions

mmployer to elect

nehane, if he pe

like any other vožu

sannst withdraw váš?

vàile

th

pai employat,

essort that ke

Amployment) noul d

/carry

L.V. Martin, mens

Government istuary's Departaen,

Steel HousD,

To thill Street,

London, SW1H SLS,

England.

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