When the employee retires their second pension then comes partly from the employer's scheme (deemed funded from the lower rate of contributions collected being diverted to this purpose) rather than the Additional Pension, although most people will continue to build up some entitlement to AP at the same time. Because they will continue to pay some National Insurance, such employees will receive the difference between the higher level of the S2P and the lower level of SERPS which they have contracted out from when they come to draw on their State Pension. "This form of contracting out lasts as long as the individual remains a member" of the employer's scheme - usually as long as they remain in a particular job. Once they leave a job, and resume employment elsewhere, they default to being 'contracted in', unless moving directly in to contracted-out employment elsewhere.