The New State Pension and Removal of Contracting Out | Shropshire County Pension fund

Shropshire County Pension fund

Taking care of your Local Government Pension in Shropshire

The New State Pension and Removal of Contracting Out

Posted on by Admin-1

The Government are introducing a new State Pension on the 6 April 2016 and from April 2016, the government plans to remove the National Insurance contribution rebate for all contracted out pension schemes. That rebate is currently 1.4% of pay which will be lost for Local Government Pension Scheme (LGPS) members.

A fact sheet has been produced by the Department of Work and Pensions (DWP) which explains the effect on the new State Pension on a individual who has been contracted-out of state earnings-related pension schemes as a result of being part of an occupational pension such as the LGPS.

Read the fact sheet here: New State Pension and Contracting-Out.

 

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