Contracting out of state second pension (S2P) Am I contracted out?
Occupational pension scheme
If you're a member of a final salary occupational pension scheme, then you may have been contracted out (contracting out disappeared in April 2016).
Employers' schemes that are contracted out don't usually allow just one member to contract back in, and its not usually advisable to leave such a scheme to contract back in because of the employer's contribution.
Most defined contribution (money purchase) occupational schemes are contracted in, but any that contracted out switched back to contracted in after April 2012.
Contracting out as an option disappeared completely in April 2016.
Stakeholder/personal pension scheme
If you have a personal or stakeholder pension, you could previously be contracted out. If you're self-employed you didn't contribute to the state second pension and so couldn't contract out of it. The type of pension you needed to contract out is known as an appropriate personal pension (APP), or an appropriate stakeholder pension (ASP). It's separate from any other personal pension you have. If you are currently paying into an APP or ASP, then you were contracted out.
From April 2012, this changed and you were contracted back in.
- For a personalised solution, call our experts on the Which? Money Helpline
- Take a look at our full expert guide to personal pensions
- Read our complete guide to state pension
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