Appropriate Personal Pension

This is a pension plan in which employer and employee pay National Insurance contributions equivalent to the employee contracting into S2P. This rate will be greater than the rate paid by contracting out of S2P.

The difference between these rates, the contracted-out rebate, is paid by the Government into a scheme known as an appropriate personal pension plan which buys pension benefits at retirement age known as protected rights.

Moneyextra's Pension section

Last Updated: March 2007 © Moneyextra.com

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