UK National Insurance Rebates Stakeholder links
What is S2P and Contracting Out?
S2P stands for the State Second Pension. This is a top-up pension to your Basic State Pension, based on the amount you earn during your working life. It is funded by some of your own and your employer's National Insurance contributions. This replaced the State Earnings Related Pension Scheme (state second pension s2p) in April 2002.
Some people might be better off by having these contributions paid into their own stakeholder pensions instead. This is known as 'contracting out'. You can contract out using your Stakeholder Pension application form or contacting the insurance company once your plan is set up.