Abolition of Contracting Out

 

From 6th April 2012, the Government has confirmed that contracting out of the State Second Pension (S2P) through Defined Contribution Schemes will be abolished.

You can continue to contract out for the tax year 2011/2012.

In addition, the current limitations on how you can use these contracted out payments when you retire will be removed from 6th April 2012.  You will no longer have to provide a pension for your spouse/civil partner when you retire - although you can if you still want to.

Contracting out beyond 5th April 2012 will only be allowed under Defined Benefit Schemes.

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