New State Pension and National Insurance changes in 2016

A new single tier, flat rate State Pension is being introduced for people who reach State Pension age on or after 6 April 2016.

As a member of the Local Government Pension Scheme (LGPS) you are currently ‘contracted out’ of the additional State Pension and therefore receive a rebate on your National Insurance (NI) contributions.

This means that most members of the LGPS are currently paying a lower amount of National Insurance contributions. From 5 April 2016 you will no longer receive this National Insurance rebate which means you will start to pay a higher amount of National Insurance contributions.

The following Q&A document has been produced to help LGPS members understand what the changes to the State Pension will mean for them.

As your statement now contains a lot more information the Avon Pension Fund has produced guidance notes and FAQs to help you. These are available at:

PDF iconQ&A for LGPS members - The New State Pension and National Insurance Changes

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