NPI has told all of its 218,000 contracted out personal pension holders that they must either "contract back in" to the State Second Pension Scheme or find another pension provider.
Although several other providers have urged clients to contract back in, NPI are the first to drop clients if they choose not to do so.
Customers who want to stay contracted-out are being encouraged to contact an adviser and have until the end of the tax year to find an alternative pension provider. All other clients are being contracted back in automatically.
Our view
Many providers are suggesting that people contract back in. In most cases, it is likley to be good advice.