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Another DB & DC pension question

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  • dunstonh
    dunstonh Posts: 121,162 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker

    In very simplified terms…..

    There were two ways to contract out and how they worked differed.

    Your way was via a defined benefit pension where you and the employer paid a lower rate of NI in exhange for not getting SERPs or S2P. You only qualified for the basic state pension. However, the defined benefit pension would effectively pay the amount you had given up from the state.

    Premium was contracted out. Alpha was contracted out only until it was abolished in April 2016

    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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