Abolition of salary related contracting-out
17 July 2015
The Government has published their response to the consultation on draft regulations The Occupational Pension Schemes (Schemes that were Contracted-out) Regulations.
The final version of the Regulations and other supporting legislation have been laid before Parliament.
The Regulations set out the rules which schemes that were contracted-out will need to comply with following the abolition of contracting-out. They ensure that members’ entitlements resulting from contracted-out employment will be preserved. A number of provisions are designed to ensure a smooth end to contracting-out for schemes.
The regulations come into force 6 April 2016.
NISPI (National Insurance Services to Pensions Industry) has published a series of countdown bulletins which provide additional guidance for pension scheme administrators about the ending of salary related contracting-out in April 2016.