The National Association of Pension Funds (NAPF) has defended its proposals to scrap the State Second Pension (S2P0 and the £9 billion of rebates that are paid into company and private pension schemes. They believe that contracted out pensions were on the decline and very few personal pensions are now sold on this basis, with many providers advising members to contract back as rebates are not enough.
They also believe that the rebate money saved should be used to provide a better universal basic state pension.
Our view
Contracting in or out is technically, excluding the main basic state pension, the only compulsory pension for employees - to scrap is lunancy unless replaced by an alternate compulsory pension.
Learn more about the State Second Pension and Contracting Out in the State Pensions Centre.