4. Contracting out
You could only contract out of the Additional State Pension if your employer ran a contracted-out pension scheme. Check with them.
While you were a member of a contracted-out workplace pension you didn’t contribute to the Additional State Pension. In some cases, you could get the Second State Pension even if you didn’t contribute, for example if your earnings were low.
You can’t contract out after 6 April 2016. If you were contracted out, your National Insurance contributions increased to your standard rate after this date.
The extra pension you get from a contracted-out pension scheme is usually the same as, or more than, the Additional State Pension you would have got if you didn’t contract out.
Check if you were contracted out
You can find out if you were contracted out by:
- checking an old payslip
- calling your pension provider
The Pension Tracing Service might be able to find your pension providers’ contact details if you’ve lost contact with them.
National Insurance while contracting out
You paid lower National Insurance contributions while you were contracted out if:
- you earned between £155 and £770 a week
- you were under State Pension age
- you didn’t pay reduced rate National Insurance
What happens when you retire
You’ll get a pension from your employer’s workplace pension scheme.