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plumduff55 wrote: »Hi, I wrote to pensions and was advised I had 42 years contributions paid. I knew that I needed 35 years contributions and wrongly surmised I would be entitled to the full flat rate of pension when I reached 66. I did not even know I was contracted out. But thanks to zagfles helpful reply I now understand.
Ah, I see a common mistake, presumably you have a nice pension from your workplace while you were contracted out. And don't forget you paid less NI contributions while contracted out, so you haven't lost out, in fact your workplace pension is probably better than the extra state pension is
Good luck fj0 -
As long as you are quoting the correct figures.I thought I'd got a handle on this but the OP has given me some doubts.
My record on the .gov.uk website says 37 years of full contributions, from 16 years old until now (no breaks or missing years). It also says I was contracted out for some of that time (which I knew) and gives a forecast of £156.57 per year, just above the OPs. Cope estimate of £51.15 per month.
I thought this meant I was under the old system, but had enough time when I was contracted in to give me additional pension of £37.27 giving me the sum mentioned.
Can someone confirm or point out where I'm going wrong?
There are 3 boxes on the forecast.
Top - what they estimate your pension will be providing certain things happen.
Middle - what you currently have accrued at April 2016 (or sometimes still April 15)
Bottom - again what they think you will get if you contribute x years or states that you cannot increase any more.
If the NI figure is up to April 15 then the estimates may be incorrect.
The middle box is the important one for now.0 -
Why do you think you're going wrong? It sounds like you have enough in SERPS/S2P to take your "old rules" amount above the new full state pension.
Nothing specific, but I've been in company pension schemes all my life so wasn't really expectings SERPS/S2P to chip in.As long as you are quoting the correct figures.
There are 3 boxes on the forecast.
Top - what they estimate your pension will be providing certain things happen.
Middle - what you currently have accrued at April 2016 (or sometimes still April 15)
Bottom - again what they think you will get if you contribute x years or states that you cannot increase any more.
If the NI figure is up to April 15 then the estimates may be incorrect.
The middle box is the important one for now.
Only one box and based on record up to 2016. The box says my forecast is £156.67 per week. Further down it says it cannot be improved.0 -
Nothing specific, but I've been in company pension schemes all my life so wasn't really expectings SERPS/S2P to chip in.
Only one box and based on record up to 2016. The box says my forecast is £156.67 per week. Further down it says it cannot be improved.
Sounds good to me, I was surprised that I had some SERPS/S2P in my forecast as well. Now getting my SP, and it was within a few pounds of the forecast.
Cheers fj0 -
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“ Not all company schemes were contracted out. Also it was possible to get SERPS/S2P accrual even while in a contracted out scheme.
Originally posted by zagfles ”
I was definitely contracted out for several years. How would I know if I was still getting SERPS/S2P during a contracted out period?
You may get a bit of S2P top up for the period 2002 to 2016 if you were on low to moderate pay.
I was contracted out from day 1 (April 1978) until I retired earlier this year. I've just requested a full State pension forecast (SPA is 66) and I'm curious to see what S2P top up I'll get, if any. I worked part time from 2003 until I retired, so I'm assuming that I will be classed as low(ish) paid. Whatever it is, I will still consider anything over the old basic State pension of £119 per week to be a bonus.0 -
Yes you get some S2P post 2002 even if contracted out if your earnings were below the "secondary earnings threshold" which was £34,300 last year, see here for previous years: http://adviser.royallondon.com/pensions/technical-central/rates-and-factors/ni-limits/low-and-secondary-earnings-thresholds/Silvertabby wrote: »You may get a bit of S2P top up for the period 2002 to 2016 if you were on low to moderate pay.
I was contracted out from day 1 (April 1978) until I retired earlier this year. I've just requested a full State pension forecast (SPA is 66) and I'm curious to see what S2P top up I'll get, if any. I worked part time from 2003 until I retired, so I'm assuming that I will be classed as low(ish) paid. Whatever it is, I will still consider anything over the old basic State pension of £119 per week to be a bonus.
Also pre 1997 you accrued SERPS whether contracted out or not - but if contracted out a "contracted out deduction" (COD) was applied. This was usually the same as SERPS but there were some circumstances where they'd be different, eg deferred pensions0 -
“ You may get a bit of S2P top up for the period 2002 to 2016 if you were on low to moderate pay.
I was contracted out from day 1 (April 1978) until I retired earlier this year. I've just requested a full State pension forecast (SPA is 66) and I'm curious to see what S2P top up I'll get, if any. I worked part time from 2003 until I retired, so I'm assuming that I will be classed as low(ish) paid. Whatever it is, I will still consider anything over the old basic State pension of £119 per week to be a bonus.
Originally posted by Silvertabby ”
Yes you get some S2P post 2002 even if contracted out if your earnings were below the "secondary earnings threshold" which was £34,300 last year, see here for previous years: http://adviser.royallondon.com/pensions/technical-central/rates-and-factors/ni-limits/low-and-secondary-earnings-thresholds/
Also pre 1997 you accrued SERPS whether contracted out or not - but if contracted out a "contracted out deduction" (COD) was applied. This was usually the same as SERPS but there were some circumstances where they'd be different, eg deferred pensions
Thanks Zagflies. I was in the Armed Forces from 1978 until 2000, so I've been drawing that pension for some time now. Looks like I may get a bit of top up for post 2002 service though - bargain!0 -
I would enquire if you had time to get up to the full £155.65 by paying a few years of voluntary NICs as you'd only have to live to 70 to be quids in, but as it's rude to ask a Lady's age I won't.Silvertabby wrote: »I was contracted out from day 1 (April 1978) until I retired earlier this year. I've just requested a full State pension forecast (SPA is 66) and I'm curious to see what S2P top up I'll get, if any. I worked part time from 2003 until I retired, so I'm assuming that I will be classed as low(ish) paid. Whatever it is, I will still consider anything over the old basic State pension of £119 per week to be a bonus.0
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