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New State Pension - changes to National Insurance contribution rates for LGPS employers

A new single tier flat rate State Pension was introduced for people who reached State Pension age on or after 6 April 2016. It replaced the existing basic and additional State Pension.


As a result of this, contracting out of the additional State Pension was abolished from 6 April 2016. This means that LGPS employers and scheme members will cease to receive the National Insurance (NI) Contribution rebate and will pay more in NI Contributions.

As an employer with LGPS contributors you may need to provide your employees with further information about the new State Pension.