A pension scheme member is contracted out if they join a pension scheme that provides benefits in place of the State Second Pension (formerly SERPS).
A pension scheme is contracted out where it provides benefits in place of the State Second Pension in exchange for paying lower National Insurance contributions and has been given a contracting out certificate or appropriate scheme certificate by the HM Revenue & Customs.
Someone who is contracted out of the State Second Pension (S2P), formerly known as the State Earnings-Related Pension Scheme (SERPS).
A pension scheme is contracted out where it provides benefits in place of SERPS and has been given a contracting out certificate or appropriate scheme certificate by the Inland Revenue. Members are contracted out if they are in employment which is contracted out by reference to an occupational pension scheme or have elected to contract out via a personal pension scheme or FSAVC scheme. A pension scheme is commonly called contracted in where it is not contracted out i.e. it provides benefits in addition to SERPS. The term ‘contracted inâ€(tm) is not used in PSA93 or PA95.
Where a member elects for their National Insurance Contributions which are usually paid to the State Second Pension (S2P), to be paid into for example an Appropriate Personal Pension Scheme (APPS) instead.
This describes a member of an occupational or personal pension scheme who is not a member of SERPS (or the scheme itself).
This term is used to describe a scheme where the members contract out of the State Second Pension.
