Contracted out/in

Pensions.

The terms 'contracted out' and 'contracted in' were applied to Occupational pension schemes in the UK 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

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