Contracted-out salary-related (COSR) scheme
A salary-related pension scheme (www.practicallaw.com/9-107-7188) that has contracted out of the state second pension (S2P) (www.practicallaw.com/1-200-3464). To qualify as COSR scheme, the scheme must satisfy prescribed requirements, set out in the Pension Schemes Act 1993. In particular, it must pay benefits that meet a certain minimum level. A member's rights in a COSR scheme are often referred to as his or her section 9(2B) rights (www.practicallaw.com/0-385-5222). The contracting-out regime is supervised by National Insurance Services to Pensions Industry (NISPI) (www.practicallaw.com/3-205-6989).