Government changes to National Insurance (NI) contributions will take effect from April 2016 and staff will see the result in their take-home pay this month. This affects you if you are below State Pension age and a member of one of the following pension schemes:<\/p>\n
– The Universities Superannuation Scheme (USS)
\n– The Superannuation Arrangements of the University of London (SAUL)
\n– The Local Government Pension Scheme (LGPS)
\n– The National Health Service Pension Scheme (NHSPS)<\/p>\n
For all other staff, NI contributions will not change.<\/p>\n
What does this mean for USS, SAUL, LGPS and NHSPS members?<\/p>\n
From 6 April, NI contributions will increase for all members.<\/p>\n
NI contributions will:<\/p>\n
– increase from 10.6% to 12% for the proportion of your salary that falls within \u00a38,060 and \u00a340,044
\n– remain at 12% for the proportion of your salary that falls within \u00a340,044.01 and \u00a343,000
\n– remain at 2% for the proportion of your salary that is above \u00a343,000<\/p>\n
You will no longer receive the 1.4% NI rebate.<\/p>\n
Why is this happening?<\/p>\n
These changes are a direct consequence of a change in the State Pension.<\/p>\n
Currently, the State Pension consists of:<\/p>\n
– the basic State Pension
\n– the Additional State Pension<\/p>\n
The Additional State Pension is also known as the State Second Pension (S2P). It replaced the State Earnings Related Pension Scheme (SERPS).<\/p>\n
Currently members of USS, SAUL, LGPS and NHSPS are contracted-out of the Additional State Pension and so pay NI at a lower rate.<\/p>\n
If you reach State Pension age on or after 6 April 2016, a new State Pension will replace the existing basic and additional State Pension, which will end the practice of contracting-out. This means all staff will pay the same rate as they build up the new State Pension in addition to their workplace pension.<\/p>\n
For further information on the changes and the effect on workplace pensions, see:<\/p>\n
Important changes to your NI contributions and State Pension from April 2016<\/a><\/p>\n Single-tier pension fact sheet<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Government changes to National Insurance (NI) contributions will take effect from April 2016 and staff will see the result in their take-home pay this month. … Read more<\/a><\/p>\n","protected":false},"author":40584,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[137337,722],"tags":[],"_links":{"self":[{"href":"https:\/\/blogs.kent.ac.uk\/finance-news\/wp-json\/wp\/v2\/posts\/621"}],"collection":[{"href":"https:\/\/blogs.kent.ac.uk\/finance-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blogs.kent.ac.uk\/finance-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blogs.kent.ac.uk\/finance-news\/wp-json\/wp\/v2\/users\/40584"}],"replies":[{"embeddable":true,"href":"https:\/\/blogs.kent.ac.uk\/finance-news\/wp-json\/wp\/v2\/comments?post=621"}],"version-history":[{"count":1,"href":"https:\/\/blogs.kent.ac.uk\/finance-news\/wp-json\/wp\/v2\/posts\/621\/revisions"}],"predecessor-version":[{"id":622,"href":"https:\/\/blogs.kent.ac.uk\/finance-news\/wp-json\/wp\/v2\/posts\/621\/revisions\/622"}],"wp:attachment":[{"href":"https:\/\/blogs.kent.ac.uk\/finance-news\/wp-json\/wp\/v2\/media?parent=621"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blogs.kent.ac.uk\/finance-news\/wp-json\/wp\/v2\/categories?post=621"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blogs.kent.ac.uk\/finance-news\/wp-json\/wp\/v2\/tags?post=621"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}