Contracting out Rebate reviewed for 2012 onwards

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The Government has published details of the contracted-out rebate rates that will apply from 2012. The new rates have been laid in a draft Order. It is a legal requirement for the rates to be reviewed every 5 years.

The five yearly review focused main on Contracted Out Salary Related (COSR) schemes, where the current total rebate is 5.3%.  This will be reduced to 4.8% from the 6th of April 2012, split as 3.4% Employer and 1.4% employee.

For Contracted Out Money Purchase (COMP) schemes, there were figures published (Employers Rebate - 1.0% and Employees - 1.4%) however the actual rebate for Defined Contribution schemes is being abolished from 6th of April 2012.  This 2.4% figure will be the minimum payment required under the COMP scheme.

It is currently thought that the Defined Benefit (COSR) rebate will be abolished from the 6th of April 2017, when the next review is held.

 

APS Global Ltd can provide payroll services in the UK.  Please contact us for more information.

 

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