Government confirms removal of contracting out

Budget 2013: The government has confirmed that defined benefit (DB) pension scheme members will no longer have the ability to contract out of the State Second Pension (SSP) from 2016/17.

The SSP will end as a result of the introduction of the single-tier state pension, which will begin from 2016/17.

From this date, DB scheme members and their employers will no longer be entitled to pay a lower rate of national insurance contributions.