BTPS

• Section A
• Section B
  • Your benefits at retirement
  • Pension options
  • Membership
  • What you pay
    • Contribution breaks
    • NI contributions
    • Tax relief for high earners
  • Additional benefit flexibility options
  • Early retirement
  • Ill-health retirement
  • Choices at age 65
  • Working for BT after age 65
  • Leaving the Company
  • Death benefits
• Section C

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

• the second part is 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, the 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, as an equivalent benefit was provided as part of your BTPS pension.

You can find out more about NI contributions by clicking on the 'more detail?' button below.

© Copyright BT Pension Scheme Trustees Limited 2010