Home - Payroll News
- Recent HR News
- FREE Newsletter
- Payroll and HR FAQs
- Payroll Forum
- Payroll Calendars
- Payroll Tools
- Monthly Brain Teaser
- The Authors
- About Us
- Contact us
abolition
Abolition of Contracting-Out on a Defined Contribution Basis
We have published this information before; however, the start of 2012 is a good time to repeat this as a reminder. Contracting-out of the State Second Pension (S2P) on a DC basis will be abolished from 06 April 2012. Contracting-out of the State scheme on a Salary-Related basis (COSR) is not affected. This has the [...]
Abolition of contracting-out on a defined contribution basis
HMRC gives further information on the impact of abolition from April 2012. From April 2012, all contracted-out “defined contribution” (DC) pension schemes will revert to “not contracted-out” schemes and, depending on their earnings levels, employees in such schemes will start to accrue pension benefits under the State Second Pension scheme. Schemes that are “defined contribution” [...]
Abolition of contracting-out for defined contribution pension schemes from 2012 now in law
Contracting-out for money purchase pension schemes will end in April 2012. What are the payroll implications? The decision of the previous government to abolish contracting-out for defined contribution pension schemes was included in the Pension Act 2007 and the effective date of 6 April 2012 has now been brought into force by a Commencement Order. [...]
Clarification of issues about abolition of contracting out of defined contribution pension schemes
From 6 April 2012, only pension schemes that contract out on a Defined Benefit (DB) basis, i.e. contracted-out salary related (COSR) schemes, will be able to contract out of the State Second Pension. Abolition of contracting-out applies only to schemes that are currently contracted out on a Defined Contribution (DC) basis, i.e. contracted-out money purchase [...]
