Occupational pension schemes: abolition of defined benefit contracting-out

This consultation asks for views on proposed changes resulting from the abolition of defined benefit contracting-out of the additional State Pension for people in occupational pension schemes.

Subject to Royal Assent to the Pensions Bill 2013-14, defined benefit contracting out of the additional State Pension will end when the current 2-tiered system of basic and additional State Pension is replaced by a single-tier pension in April 2016.

We are seeking views on:

• the draft Occupational Pension Schemes (Power to amend Schemes to Reflect Abolition of Contracting-out) Regulations 2014 (Annex A) – that set out how employers can amend scheme rules, without trustee approval, to reduce costs following the increase in employer National Insurance when contracting-out ends
• the draft Occupational Pension Schemes (Schemes that were Contracted-out) Regulations 2014 (Annex B) – that will replace the Occupational Pension Schemes (Contracting-out) Regulations 1996

We welcome comments on the draft regulations from pension scheme trustees, their advisers, employers who sponsor contracted-out occupational pension schemes, pension scheme professionals, pension scheme members, member representative organisations and anyone else with an interest.