The paper discusses the implications of the Social Security Pensions Act 1975 and associated Regulations for occupational pension scheme design and finance. Firstly, a general preface deals with currently topical matters. Secondly, integration of State and Occupational Schemes as practised up to the present time is described. Next, integration in future, whether contracted in or contracted out, is considered from the scheme design point of view, and some problems are mentioned. Finally, the financial background to the contracting-out conditions is described and some evaluation made of the terms available.