A Circular has been issued by the pensions agency on the end to contracting out from 6/4/16
The FBU would urge all our members to please read this circular along with the letter and factsheet embedded in this circular as a pdf document.
Members who are currently contracted out in their pension scheme will see National Insurance contributions rise by 1.4%
The main implication of this change for scheme members is that from 6th April they will no longer pay the lower rate of National Insurance that came with being a member of a defined benefit, contracted-out, scheme. This will mean an increase in employee National Insurance contributions of around 1.4% of earnings between the relevant National Insurance thresholds, set each year by HM Treasury.