This guide outlines the National Insurance Services to Pensions Industry (NISPI) function and explains how occupational pension schemes and Appropriate Personal Pension Schemes are “Contracted” out of the State Additional Pension. If a person is contracted-out they are not contributing to the state Additional Pension but instead will be paid a pension from their employer or pension provider depending on the scheme.

The NISPI is a directorate within the National Insurance Contributions Office. The National Insurance Contributions Office is part of HMRC. The NISPI has certain responsibilities which include ensuring that the pension rights of individuals are accurately recorded, accurately maintained, and secured under whichever method of contracting-out that applies.

Ful details and frequently asked questions are available at http://www.hmrc.gov.uk/nic/nispi-guide.pdf