The Pensions Act 2007 contained provisions to end the option of contracting out via personal pensions or money purchase occupational schemes (COMPS), but again it does not set a date. In practice, this form of contracting out is likely to disappear from 6 April 2012, when the latest set of contribution rebates expires.
There is no legislation to end contracting out for defined benefit (final salary) pension schemes. A combination of shrinking contracting out rebates and the closure of schemes to existing members may mean that in any case very few active private sector contracted out members will remain by the time S2P becomes flat rate.Last Updated
Knowledge Bank >
Retirement planning >
State pension changes
06: Contracting out
The FSA does not regulate tax advice. Tax rules are subject to change.
