The following Pensions guidance note Produced in partnership with Wyn Derbyshire of gunnercooke LLP provides comprehensive and up to date legal information covering:
Contracting-out was the mechanism whereby an individual (whether employed or self-employed) could elect to forgo accrual of the element of the State pension which, before 6 April 2016, was known as the additional State pension (or Second State Pensions (S2P)).
Contracting-out on a money purchase basis (or DC contracting-out) first became possible in April 1988.
Contracting-out on a money purchase basis required the relevant contracted-out pension scheme to provide contracted-out members with ’protected rights’ in lieu of the state benefits forgone as a consequence of contracting-out.
Before 6 April 2012, protected rights could be provided through the following contracted-out schemes:
contracted-out money purchase (COMP) schemes. While these occupational pension schemes were mostly defined contribution schemes, there could also be defined benefit schemes contracted out on a money purchase basis through a protected rights underpin
the COMP section of mixed benefit (COMB) schemes. COMB schemes were created on 6 April 1997 and made it possible for a contracted-out salary-related (COSR) scheme to contract out on a money purchase basis (by creating a COMP section) and for a COMP scheme to contract out on a salary-related basis (by creating a COSR section). COMB schemes operated on the principle that the money purchase and salary-related sections were treated
**Trials are provided to all LexisPSL and LexisLibrary content, excluding Practice Compliance, Practice Management and Risk and Compliance, subscription packages are tailored to your specific needs. To discuss trialling these LexisPSL services please email customer service via our online form. Free trials are only available to individuals based in the UK. We may terminate this trial at any time or decide not to give a trial, for any reason. Trial includes one question to LexisAsk during the length of the trial.
To view the latest version of this document and thousands of others like it, sign-in to LexisPSL or register for a free trial.
Existing user? Sign-in
Take a free trial
0330 161 1234
To view our latest legal guidance content,sign-in to Lexis®PSL or register for a free trial.