How does s2p accrual

From 6 April employers and employees with occupational pension schemes contracted-out of S2P received contracted-out rebates on earnings between the lower earnings limit and the upper accrual point. Employers and employees paid National Insurance contributions at From this date the accrual under band 1 became a flat rate. The examples below show how this works in practice for post 6 April accrual, assuming earnings are revalued to state pension age at approximately 2.

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