Pension query

Jan 04, 2005 2 Replies

My husband was in a non-contributory contracted out final salary company pension scheme for 17 years until he was made redundant in February last year, so he paid a lower rate of NI. He's had a year in a job with no pension payments, and has now just changed jobs again to a company that has a contributory pension scheme that is contracted in, which he has to make up his mind whether to join within 6 months.



Can you tell me please, when he was made redundant and restarted work for the new company where he again paid the full NI rate on all earnings - did he automatically become contracted in again by paying full NI although he wasn't in a pensions scheme or should we have done *something* (if so what?) to change back to contracted in from contracted out?



That sounds as clear as mud to me (I know zilch about pensions!) but I hope some kind soul can understand what it is I'm trying in my poor way to ask and send me an answer in plain, idiot proof english!



Thanks all



Lucy


The pension schemes are contracted out or in. Usually the members have no choice about their status if they are in the final salary company scheme. In money purchase schemes members can contract out individually, AIUI.

Yes.

No.

Suggest you sign up to the online state pension forecast, it'll tell you how much pension you've earned to date and how much you'll get if you carry on as now (although it doesn't seem to account for future HRP).

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