Will new S Pension cause resentment?

atush wrote: »

I agree, with 45 years and no contracting out- even the lower paid should be clear of 155/week?

That's not what Her Majesty's secret service is saying, however, it appears i have surfed several contribution rules.

xylophone wrote: »

Between 1971 and 1975, it is likely that you accumulated some "graduated pension" (forerunner to SERPS/S2P), though this will be a tiny amount.


This is true. I have several qualifying "graduated pension" years pre 1975, however procuring that information is nigh on impossible, seemingly, (probably until retirement?) I don't think it will be a significant amount, as i was working whilst i was a student, as were most of my peers. Student loans didn't exist in those days. I seem to remember an old "grant" system, which amounted to, nothing.

http://www.ukpensioncalculator.co.uk/guide/165/graduated-pension.html


In April 1961 the government introduced the State Graduated Pension, also known as the Graduated Benefit or Graduate Retirement Benefit. This was a state scheme related to your National Insurance contributions which were in turn related to your earnings as an employee. Your National Insurance contributions were divided into ‘units’: essentially every £7.50 that a man contributed and every £9 that a woman contributed bought one unit. These units would be given a value and used to calculate entitlement to an extra benefit on retirement. The scheme was intended to top up the basic State Pension and ensure that pensioners had more to live on than this basic benefit alone. This early form of the earnings-related pension was later replaced by SERPS in April 1975 which has in turn been replaced by State Second Pension, or S2P.

Apparently you can accrue a maximum of 86 units, i think it was, and it is now £7.50 to buy one unit for both men and women. I've also been told the scheme was little used.

Between 1978 and 2002 you should have accumulated some SERPS


Yes, all fully qualifying years.


and from 2002 some S2P.


Ditto

As for the rest, you've lost me, it's all too confusing and I'm definitely not a pensions expert, but thanks for the info.

molerat wrote: »

I stopped work in 2009 with 39 years of contributions. I spent the majority of my working life contracted out and have a current accrual of £135.48 so I would expected you to have more than £155.65. Have you had an on line or printed forecast ?

he/she said back in post #17 that a forecast has only just been requested, it would be good of them to report back when it's received...

Did you read the link https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181237/single-tier-pension-fact-sheet.pdf
which was aimed at the general public?

Because it was written a couple of years ago, the figures for basic state pension and new state pension are no longer correct but the principle remains the same.

So

"When single tier starts we will look at your National Insurance record and work out its value under the single-tier rules. At the same time we will work out what you may have got under the present state pension rules.

• The higher of these two amounts will then become your single-tier foundation amount.

....... your foundation amount could be equal
to, more than or less than the full single-tier pension.

You say that you were always contracted in and that you have 45 years of contributions.

Under the new rules this would entitle you to a full NSP.

Under the old rules, it would entitle you to a full BSP of £119.30 a week plus any Grad, SERPS and S2P.

If your BSP +GRAD +SERPS +S2P is equal to the full NSP then that is your starting amount.

If it is less than NSP, then your starting amount is NSP.

If it is more than full NSP ( and in your position with 45 years of Grad/SERPS/S2P one would have expected this to be the case - see the example of "Jenny" on p8 of the link ) then you get full NSP plus the extra you have accrued as a "protected payment".

xylophone wrote: »

Did you read the link https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181237/single-tier-pension-fact-sheet.pdf
which was aimed at the general public?


Yes i have, thanks.



If it is more than full NSP ( and in your position with 45 years of Grad/SERPS/S2P one would have expected this to be the case - see the example of "Jenny" on p8 of the link ) then you get full NSP plus the extra you have accrued as a "protected payment".

It's established i will receive full basic state pension under whatever rules, what is unclear, is how much i will receive as a "protected payment" and this is something only Her Majesty's Secret Service has the answer to, and at the moment they are saying it's a big fat nothing.

Looking around the forum, it seems there are a fair few "winners" from the system, but no "losers?" I wonder why? Maybe they are just not aware of it, yet? But maybe there is a smaller cache of "losers?"

I will report back when I've had a definitive reply / calculation from HMSS.