Contracted out/in

Pensions - UK.

The terms 'contracted out' and 'contracted in' were applied to UK Occupational pension schemes in relation to the State Second Pension (S2P).

A UK pension scheme was 'contracted out' where it provided benefits in place of S2P and 'contracted in' where it provided benefits in addition.

With effect from 2016, contracting in/out ended with the introduction of the UK State Pension.

See also

• GMP equalisation
• Lower earnings limit
• Occupational pension scheme
• State Pension
• State Second Pension
• Upper earnings limit