Re: FSA advising "most consumers" to contract back in to S2P


"Andy Pandy" <spam8times@xxxxxxxxxxxxxxxxxxxxxx> wrote in message
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"Miss L. Toe" <missltoemissltoe@xxxxxxxxxxx> wrote in message
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During all the A-day etc debate I heard a couple of times (and hearing
something and it becoming fact in a future law are obviously very
different)
that S2P will be abolished in 20xx and everyone who had been contracted
in
at some point will get the same fixed rate just to simplify things.

That is the long term plan - the white paper says accruals will gradually
start to
become flat rate and they estimate by 2030 will be totally flat rate. But
AIUI S2P
credits earned before then should increase in line with earnings as now.

If that happens it makes sense to be contracted in for one year and out
for
the rest.

You won't get the choice. Contracting out will soon be abolished except
for DB
schemes (eg company final salary schemes).

--
Andy



I thought it was contracting IN that would be abolished :-)

People who currently have always been contracted out may benefit from
contracting back in for one year I believe.


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