As outlined in the August 2015 edition of Pensions Pieces, a new single-tier state pension is being introduced with effect from 6 April this year, which will also bring an end to contracting-out. In our article, we also flagged the mechanisms by which employers in relation to ‘open’ contracted-out schemes may mitigate the effect of increased employer national insurance contributions that will be payable from April 2016 as a result of the end of contracting-out. Briefly, employers can, if they wish, either increase employee contributions in respect of future accrual or reduce the rate of future accrual (in both cases only to the extent necessary to compensate the employer for the increase in national insurance contributions, as determined in accordance with regulations).