The following Pensions guidance note provides comprehensive and up to date legal information covering:
THIS PRACTICE NOTE APPLIES IN RELATION TO SCHEMES THAT WERE CONTRACTED-OUT SALARY-RELATED SCHEMES BEFORE 6 APRIL 2016
Contracting-out on a salary-related basis (also known as DB contracting-out) was abolished on 6 April 2016. All contracted-out members therefore ceased to be in contracted-out employment on and from that date. For more information, see Practice Note: Abolition of DB contracting-out—an introduction. For more information generally on contracting out, see Practice Note: Contracting-out of the additional state pension—what does it mean?
This Practice Note describes the considerations that were applicable when a member of a contracted-out salary-related (COSR) scheme ceased to be in contracted-out employment:
before 6 April 2016, and
at a time when the scheme continued to be a COSR scheme
Note that different considerations applied when a member ceases to be in contracted-out employment (before 6 April 2016) as a result of a scheme ceasing to be a COSR scheme. For more information on the considerations that were applicable in such circumstances, see Practice Note: Considerations where scheme ceased to be a COSR scheme before 6 April 2016 [Archived].
Before 6 April 2016, a member ceased to be in contracted-out employment when:
the member's service with the sponsoring employer terminatedSI 1996/1172, regs 43(1)(a)–(b), (2)
the contracting-out certificate covering the member's employment was surrendered or cancelled (for more information on which, see Practice Note: Surrendering a DB contracting-out certificate before 6 April 2016 [Archived])SI 1996/1172, reg 43(1)(c)
the contracting-out certificate covering the member's employment was varied, or the nature of the member's employment changed, so that their employment ceased to be covered
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