A person could also contract out of Additional Pension with a stakeholder pension or a personal pension plan which they may nominate. This vehicle was then known as an Appropriate Personal Pension, or APP. If they did this, instead of their paying lower National Insurance contributions, once a year HM Revenue & Customs paid directly into their APP a rebate, sometimes known as a Minimum Contribution. This rebate is intended to provide benefits broadly the same as the Additional Pension given up - that is, full S2P. Its value is therefore determined by reference to the individual's age and level of earnings that year but not directly by how much they may pay in National Insurance in that particular year. "This second form of contracting out occurs one (tax) year at a time" - each year the individual has the option to elect to contract back into the full S2P Additional Pension. Where an employee earns less than the LET (£9000 for instance) their rebate will be based on their actual band earnings (£9000 - £4368) so that they would still receive some S2P through their State pension later - equivalent to the difference remaining (here, £12500 - £9000).