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<p>The introduction of the new State Pension means that contracting-out of the additional
State Pension ended on 5 April 2016. This changed National Insurance contributions
for people in Defined Benefit pension schemes who were previously contracted-out,
as these employees paid a lower rate of National Insurance in exchange for contributing
towards a workplace pension. These changes have been a part of our significant communications
effort around the new State Pension.</p><p> </p><p>Proposals to end contracting-out
were first published in a 2011 Green Paper “A State Pension for the 21<sup>st</sup>
century” and then in a January 2013 White Paper “The single-tier pension: a simple
foundation for saving”. Proposals went through consultation with employers, pension
schemes and their representatives before the Pensions Act was passed in 2014.</p><p><em>
</em></p><p>In November 2014, we launched a public information campaign “Know the
Facts” which included specific contracting-out press advertorials, blogs, fact sheets
and digital communications. Our new State Pension resource pack has been issued to
over 350 organisations and many more employers, to help support them explain the changes
to their members and staff, including the change in contracting-out status for their
workplace pensions.</p>
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