We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Claimng deferred state pension online
Options
Comments
-
greenglide wrote: »
Under the old payday and periodicity rules (before 2010, not to be confused with the nSP "new rules") if you were paid four weekly it was actually paid three weeks in arrears and one week in advance.
Are you sure about this. I only ask because my mother when she died (over 90 so a long time pensioner) had 4 weeks paid into her bank the day after she died. She did not have to repay it because she died in the last benefit week of the 4. If any of it was in advance she would have had to repay a week. They also paid an extra weeks AA as that had been paid the week before.
I believe the new rules state payments to the day.0 -
Yes but they are different rules that are "new"!
You have to consider the days for which the payment is covering and the date on which it is actually paid.
The changes for nSP pay the start from the day people attain State Pension age rather from the next payday as had always been the case. At the same time they change the rules over death so that they only pay up to the date of death whereas previously they paid up to the next payday after the date of death.
You win at one end and lose at the other.
Before nSP entitlement was generally only for complete weeks (there are exceptions), for nSP they tend to pay odd days at start and end. For who what is, by legislation, a weekly benefit this does raise problems.0 -
greenglide wrote: »Yes but they are different rules that are "new"!
You have to consider the days for which the payment is covering and the date on which it is actually paid.
You win at one end and lose at the other..
Not much use winning a week when you're dead!I am not a cat (But my friend is)0 -
greenglide wrote: »No it wasn't.
What people seem to have overlooked is the the first payment of a four weekly cycle usually pays for less than four weeks to put the person "on cycle".
So I underwtand. Are you saying that under old rules that the first payment after a retirement date will be less than future payments to cover only the entitled pension between retirement date and that first payment?
And that if you complete the online form to request a deferred pension be started on the 6th April 2018 the deferred pension will be calculated on the new pension rate rather than the 2017 rate?
Thanks.
0 -
Under "old rules" you are paid for complete weeks only. So if your birthday was on thursday and your payday was Monday, you were entitled from the following Monday, you did not get paid thursday to Sunday, but when you died, you retain the full week payment, ie payday
Monday, died tuesday, paid sp until sunday. Under new rules you will now get paid part days ie claim thursday, payday monday, you get the part payment between those days. Downside is the other end, you die on wednesday, your entitlement stops wednesay. You no longer get paid to end of your benefit week. Greenslide is wrong about the one week advance in a four weekly payment. Your deferral amount is based on your entitlement when you turned state pension age, and worked from that figure.0 -
Greenslide is wrong about the one week advance in a four weekly payment. Your deferral amount is based on your entitlement when you turned state pension age, and worked from that figure.
I'm sorry but I think you are wrong. The deferred pension is calculated on the date of retirment NOT what you were entitled to on your retirement date. There is an example showing this. Hence why there is a hotspot deferring until the first day of the new tax year:
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/626494/state-pension-deferral-if-you-reached-state-pension-age-before-6-april-2016-extra-information.pdf
Example
– Extra State Pension post 6 April 2005
Ann reached State Pension age in 2011 and decided to put off claiming her State
Pension. She starts claiming it from May 2013. On the date she claims, her weekly State Pension (before DWP add any extra State Pension) is £120.
Ann has put off claiming for 100 weeks. This means she is entitled to an extra £24 a
week on top of her £120. DWP have worked this out as follows.
Ann has put off claiming for more than the five week minimum period, so for every week she put off claiming, DWP pays Ann 1/5th of 1% of the weekly pension she would have
been receiving during that time.
This is equivalent to 1% for every five weeks. To work out Ann’s extra State Pension for
each year she put off claiming, DWP divide this 1% figure by five.
In Ann’s case this is:
£120 divided by 500 = £0.24 (500 is used because £120 is divided by 100 to get 1%
and then divided by five to get it over the 5 weeks, so 500 is 100x 5)
£0.24 x 100 (the number of weeks Ann put off claiming) = £24.
Ann gets a total State Pension of £144 a week. This is made up of her £120 a week State Pension plus her £24 a week extra State Pension0 -
Just to illustrate the point with some real numbers.
The current state pension (old scheme) is £122.30. In a few weeks it increases to £125.95 an increase of £3.65 weekly. My wife and I are entitled to a combined increase for deferral of 100.6%.
This means that for claiming our deferred pension the first week of the new year (and ignoring the extra week of deferral) an increased amount of £3.65 weekly or £190 per year will be paid. This will increase each year. So ignoring increases if this were paid for 20 years this is an extra £3800 for simply waiting for the new tax year and having the calculation based on the new higher amount rather than the current lower amount.0 -
This presumably explains why deferred pensions are not paid on the date specified by their NI NOs but on the date you specify as you will always specify a complete number of weeks.0
-
The deferred pension is calculated on the date of retirment NOT what you were entitled to on your retirement date.
As UK1 says, the amount of Extra Pension will be calculated from the Basic State Pension on the day when the State Pension is claimed.
When I claimed my deferred pension, I eventually received a letter from DWP (about five weeks after the claim was submitted) which stated the amount of Extra State Pension which would be added to my Basic State Pension. No calculation or breakdown was given, but I did my own calculation based on the then current state pension and the number of weeks of deferral - my calculation matched the DWP figure to the nearest penny.
I am paid four-weekly; the Extra pension due to deferral is included with the Basic. I would be surprised if DWP would make two separate payments for weekly-paid pensioners but I've no evidence to back-up that expectation.
Notes:
1. This applies only to the old, pre-2016, state pension. The new state pension has different rules, particularly the deferral rate.
2. The payment of the Extra pension from deferral did not start until two months after the claim date when I received an 8-week backpayment.
3. The amount of the Extra State Pension gets only annual CPI increases, not the full triple-lock increases of the Basic State Pension.0 -
As UK1 says, the amount of Extra Pension will be calculated from the Basic State Pension on the day when the State Pension is claimed.
Sorry but I have to take issue here. The amount of extra pension is calculated using the "Weekly state pension amount" This includes Serps, GRB. etc etc.
Not just basic state pension.I am not a cat (But my friend is)0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.2K Banking & Borrowing
- 253.2K Reduce Debt & Boost Income
- 453.7K Spending & Discounts
- 244.2K Work, Benefits & Business
- 599.3K Mortgages, Homes & Bills
- 177.1K Life & Family
- 257.7K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards