National Insurance contributions will be going up for members by an average of 15% from April. The lower the earning, the bigger the percentage rise. The rise is part of the introduction of the new State Pension. From 06 April new contributions to State Second Pension (S2P or SERPS as it used to be called) will end.
Basically nobody will be able to ‘contract out’ in favour of paying into a defined benefit scheme (as is the Local Government Pension Scheme).Previously members who do ‘contract out’ pay a reduced rate of National Insurance Contributions. From April that will stop!
This is yet another government attack on our members’ net pay as the majority of these defined benefits pension schemes are found in the public sector nowadays.
Published on: November 19, 2015