This practice note considers the key points about legislation that allowed employers and employees in occupational and personal pension schemes to contract out of the state second pension (and its predecessor SERPS). Contracted-out schemes were required to comply with specific rules about the alternative benefits they provided outside the state pension system. Contracting-out on the salary-related basis was abolished on 6 April 2016. But formerly contracted-out salary-related schemes must continue to comply with certain rules about the treatment of contracted-out rights. Contracting-out on the money purchase basis had previously been abolished on 6 April 2012.