Latest NewsFebruary 2012Abolition of contracting out of S2P While individuals in defined contribution pension schemes have been able to contract out of the State Second Pension (S2P) since the late 1980s, this option will no longer be available from 6th April 2012. Individuals who are contracted out agree to accept rebates of employee and employer National Insurance contributions - which are used to build up a protected rights fund – instead of S2P benefits. The move means that scheme members who are contracted out will automatically be contracted back in to S2P from 6th April, and will start to accumulate S2P benefits from that date. Furthermore, protected rights will no longer need to be held independently of non-protected rights, and can be used in the same way. As the abolition of contracting out does not apply to defined benefit schemes, members of these schemes will not be affected by the changes. |
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Birchwood Investment Management Ltd is authorised and regulated by the
Financial Services Authority as an Independent Financial Adviser.
The value of investments can fall as well as rise and past performance is not a guide to future performance.
The Financial Services Authority does not regulate taxation and trust advice, will writing, redundancy counselling or advice on state benefits.
IFA Hertfordshire | IFA Welwyn
The value of investments can fall as well as rise and past performance is not a guide to future performance.
The Financial Services Authority does not regulate taxation and trust advice, will writing, redundancy counselling or advice on state benefits.
IFA Hertfordshire | IFA Welwyn