30 November 2010
The Department for Work and Pensions (DWP) has today published
the government's response to the consultation on the abolition of
Contracting-Out of the additional state pension.
To view the response click here
As a result of the feedback, the government will permit
transfers from contracted out defined benefit schemes to
non-contracted out schemes after contracting-out on a defined
contribution basis is abolished in April 2012. Safeguards will
however be put in place so that members are aware of the
implications.
Pensions minister Steve Webb said:
"The abolition of contracting out on DC basis will provide an
important simplification for schemes and members.
"We listened to the views of our stakeholders during our recent
consultation and we have decided to allow transfers from
contracted-out DB schemes to non-contracted-out schemes following
abolition.
"However, we will introduce safeguards to ensure that members
are aware of the implications of transferring."
