BGCM EC May 2017

You should note that the Government intends to abolish the State Second Pension in April 2016 and replace it, and the State Basic Pension, with a single higher rate State pension. That will not affect the benefits that you have built up in the Scheme up to the date when it is abolished, but after April 2016 it will not be possible to contract out of the State Second Pension.

As a consequence, your National Insurance Contributions will increase, but in return you will begin to build up an entitlement to the new, higher, State pension.

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