Pension Schemes – Abolition of contracting outThursday, March 25th, 2010
The Pensions Advisory Service has confirmed the government’s intention to abolish contracting out of the State Second Pension from 6 April 2012. From that date, members of defined contribution occupational pension schemes, contracted-out personal pension schemes and stakeholder pension schemes will automatically be brought back into the State Second Pension.
The change only applies to future state pension benefits and will not affect contracted-out rights accrued up to 6 April 2012.
There is still a long-term intention to remove contracting out through defined benefit schemes also.
Changes to contracted out pensions from 2012
Sponsored by Learn Payroll – Understanding Pension Schemes and NI