How does my occupational pension affect my additional State Pension?
When you retire, if you have been a member of your employer’s occupational pension scheme, you will get an occupational pension as well as the basic State Pension and the additional State Pension. You can contract out of (leave) the additional State Pension by joining an occupational scheme that is contracted-out. If you do decide to contract out, when you retire your second pension will come from your employer’s pension scheme and not from the additional State Pension. However, from 6 April 2002 members of contracted-out occupational schemes have been able to build up entitlement to a small amount of State Second Pension as well. Most people in occupational pension schemes are contracted out of the additional State Pension.
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