The State Pension is changing to a single tier system from 6 April 2016. The introduction of a single tiered State Pension means that ‘contracting out’ will end and HSC Pension Scheme members will no longer pay a lower rate of National Insurance. While this will have an effect on members’ take home pay, it will not affect their HSC Pension.

Please read Public Sector Letter from the Department for Work and Pensions for more information

End of Contracting Out