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 contracted-out salary-related (COSR) scheme ceased to be contracted-out before 6 April 2016.
Note that different considerations applied when a member ceases to be in contracted-out employment (before 6 April 2016) at a time when the scheme continued to be a COSR scheme. For more information on the considerations that were applicable in such circumstances, see Practice Note: Considerations where member ceased to be in DB contracted-out employment before 6 April 2016 [Archived].
A COSR scheme could not be contracted-out without a contracting-out certificate. So it ceased to be contracted-out when the only or last contracting-out certificate in relation to that scheme had been surrendered or cancelled.
A COSR scheme continued to be contracted-out if:
an employer participating in a multi-employer scheme surrendered its contracting-out
**excludes LexisPSL Practice Compliance, Practice Management and Risk and Compliance. 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
Take a free trial
0330 161 1234