Contracting-out to be abolished in 2012

Standard Life says the change should remove some of the differences between protected rights and other pension savings, with benefits for consumers. The 2011/12 tax year will be the last opportunity for people in defined contribution schemes to contract-out of the state second, and those using personal or stakeholder schemes will receive no further National Insurance (NI) rebates after April 2012. Defined benefit scheme members who have contracted-out will not be affected. Andrew Tully, pensions policy manager at Standard Life, says the change should result in further harmonisation...