Err, wrong, I'm afraid.
As far as I know, contracting-out will shortly be impossible through a money-purchase occupational pension scheme, or a personal pension or stakeholder pension. Those people contracted out through such as scheme will be able to continue to make their own contributions and to benefit from any employer contributions to the scheme. Accrued benefits will continue of course.
However, they will no longer be able to benefit from any rebate of NICs. This is important as it will kill the majority of such schemes dead.
The pensions Green Paper presented to the House of Commons in April 2011 included proposals for the introduction of a much higher universal basic pension, part-financed by scrapping the additional pension (S2P) and with it the ability to contract out. But the Pensions Minister told the HoC that Serps and S2P benefits pension savers had accrued would be preserved.