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The end of contracting out – A change to your State Pension

The current State Pension is changing to a single tier system from 6 April 2016, for those reaching State Pension age on or after that date.

As a result of this, ‘contracting out’ will end and anyone who is in a public service pension scheme will no longer pay a lower rate of National Insurance.


Further information on this can be found at:  https://www.gov.uk/contracted-out  


Although this change will affect take home pay, it will have no impact upon the pension scheme benefits that are due to you from the SPPA.

For more information about this change to the State Pension please visit: https://www.gov.uk/yourstatepension

Link to Scottish Government Website