NI contributions
From 6 April 2009 BTPS ceased to be contracted-out of the State Second Pension (S2P). This change only affects benefits built up from that date.
The State Pension Scheme is divided into two parts:
- the Basic State Pension is a flat rate pension paid to everyone who has paid sufficient National Insurance (NI) contributions; and
- an earnings-related pension which is calculated for each individual depending on the amount that they have earned during their working lifetime. This is called the State Second Pension (S2P).
Until 6 April 2009, BTPS was contracted-out of the S2P which meant that members paid lower NI contributions and earned less or no S2P for the period during which they were a member of BTPS.
You can find out more about NI contributions by clicking on the 'more detail?' button below.
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