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  • FIRST POST
    • MSE Helen Saxon
    • By MSE Helen Saxon 31st Mar 16, 1:09 PM
    • 72Posts
    • 38Thanks
    MSE Helen Saxon
    New State Pension Guide
    • #1
    • 31st Mar 16, 1:09 PM
    New State Pension Guide 31st Mar 16 at 1:09 PM
    Hi!

    This is the discussion thread for the



    Click reply below to discuss. If you havenít already, join the forum to reply. If you arenít sure how it all works, read our New to Forum? Intro Guide.


    Thanks folks,
Page 12
    • Silvertabby
    • By Silvertabby 17th Sep 16, 1:06 PM
    • 105 Posts
    • 107 Thanks
    Silvertabby
    If I could face the humiliation I could accrue £4 odd a week pension for the next five years, lets be generous and call it £25. Less income tax that is £20 a week.
    Problem is I would need to attend the JCP 130 times.
    Sod that for a game of soldiers.
    Tor - me too. I've recently retired at 60 and, as I've always been contracted out, I'm toying with the idea of paying voluntary contributions to bump up my State pension from the expected £119 per week. There's no way I'm signing on - I'm not going through all that again.
    Last edited by Silvertabby; 17-09-2016 at 1:06 PM. Reason: add
    • minty777
    • By minty777 17th Sep 16, 8:21 PM
    • 116 Posts
    • 102 Thanks
    minty777
    Minty - the first 10 years would be calculated on a 1/60th basis, and the remainder at 1/75th. There are laws in place to prevent the retrospective reduction of final salary pension benefits already 'banked'.

    Was the accrual rate reduced in order to keep your scheme financially viable?
    Originally posted by Silvertabby
    I don't remember those exact words silvertabby.As for the accrual rate i just imagined they would work out the average so the accrual rate would be something like 1/68th.Not that that is the correct average as i would'nt know how to work it out.
    • Silvertabby
    • By Silvertabby 17th Sep 16, 9:04 PM
    • 105 Posts
    • 107 Thanks
    Silvertabby
    I don't remember those exact words silvertabby.As for the accrual rate i just imagined they would work out the average so the accrual rate would be something like 1/68th.Not that that is the correct average as i would'nt know how to work it out.
    No, your service would be split into the two accrual rates.

    In the case of the LGPS, the accrual rates are/were:

    Up to 2008 = 1/80th plus automatic lump sum of 3 times pension (final salary)

    2008 to 2014 = 1/60th with no automatic lump sum (final salary)

    2014 onwards = 1/49th with no automatic lump sum (career average).

    So, someone who joined the LGPS before 2008 would have their benefits calculated on 3 different accrual rates. The LGPS has maintained the final salary link beyond the switch to career average so, in the case of someone who left today, their final salary benefits up to 2014 would be calculated on their final pensionable pay (or best previous year if applicable).

    Do you have a pension scheme guide? That should explain how the change in the accrual rate affects your pension.
    • minty777
    • By minty777 17th Sep 16, 9:36 PM
    • 116 Posts
    • 102 Thanks
    minty777
    No, your service would be split into the two accrual rates.

    In the case of the LGPS, the accrual rates are/were:

    Up to 2008 = 1/80th plus automatic lump sum of 3 times pension (final salary)

    2008 to 2014 = 1/60th with no automatic lump sum (final salary)

    2014 onwards = 1/49th with no automatic lump sum (career average).

    So, someone who joined the LGPS before 2008 would have their benefits calculated on 3 different accrual rates. The LGPS has maintained the final salary link beyond the switch to career average so, in the case of someone who left today, their final salary benefits up to 2014 would be calculated on their final pensionable pay (or best previous year if applicable).

    Do you have a pension scheme guide? That should explain how the change in the accrual rate affects your pension.
    Originally posted by Silvertabby
    Very helpfull thank you
    • minty777
    • By minty777 19th Sep 16, 10:51 AM
    • 116 Posts
    • 102 Thanks
    minty777
    No, your service would be split into the two accrual rates.

    In the case of the LGPS, the accrual rates are/were:

    Up to 2008 = 1/80th plus automatic lump sum of 3 times pension (final salary)

    2008 to 2014 = 1/60th with no automatic lump sum (final salary)

    2014 onwards = 1/49th with no automatic lump sum (career average)
    Originally posted by Silvertabby
    Hi Silvertabby

    How would this work out as in your example?

    Final salary £20k and 20 years service.

    10 years at 1/60 accrual

    10 years at 1/75 accrual
    • Silvertabby
    • By Silvertabby 19th Sep 16, 12:00 PM
    • 105 Posts
    • 107 Thanks
    Silvertabby
    Hi Silvertabby

    How would this work out as in your example?

    Final salary £20k and 20 years service.

    10 years at 1/60 accrual

    10 years at 1/75 accrual
    Hi - the exact calculation would depend on your scheme rules, but the LGPS would work it out like this:

    1/60th = £20K / 60 x 10 = £3333.33 pension per annum

    1/75th = £20K / 75 x 10 = £2666.67 pension per annum

    Total pension per annum = £6K

    You need to check that your scheme 'ran on' your benefits at the accrual rate change, otherwise your 1/60th benefits may be calculated on your salary as at the date of change, and not your date of leaving.
    • frank777
    • By frank777 19th Sep 16, 6:01 PM
    • 276 Posts
    • 120 Thanks
    frank777
    The new State Pension - I'll keep it simple I retire next year. If I decide pay for voluntary class 3 NI for 2016/17 do I need to get them before the end of this tax year to get the extra increased weekly starting amount of around £4.45 for my State Pension due July 2017. I haven't seen this question asked before, maybe it's too early to be asking?

    Also is this extra payment backdated if I pay for the NI say 12 months after I draw my State Pension
    • rose28454
    • By rose28454 21st Sep 16, 10:53 AM
    • 4,351 Posts
    • 43,468 Thanks
    rose28454
    My husband is retiring next week and has just had a letter saying his pension will be £121.00 a week. The letter says this is the safe amount as they dont have access to his NI records at present. He has just stopped receiving Carers allowance for his dad who dies recently and I presume thats the reason for the NI thing. He gets a pension from his work ( he was a postman for 33 years ) so I presume he was contracted out as he was paying into a private pension.
    I wonder if anyone knows if that amount sounds right as it seems a bit low.
    • Silvertabby
    • By Silvertabby 21st Sep 16, 11:05 AM
    • 105 Posts
    • 107 Thanks
    Silvertabby
    My husband is retiring next week and has just had a letter saying his pension will be £121.00 a week. The letter says this is the safe amount as they dont have access to his NI records at present. He has just stopped receiving Carers allowance for his dad who dies recently and I presume thats the reason for the NI thing. He gets a pension from his work ( he was a postman for 33 years ) so I presume he was contracted out as he was paying into a private pension.
    I wonder if anyone knows if that amount sounds right as it seems a bit low.
    Sounds like my may get a little more once his NI record is updated but, as his Post Office pension was contracted out, he won't get the full £155.
    • xylophone
    • By xylophone 21st Sep 16, 11:15 AM
    • 18,459 Posts
    • 10,387 Thanks
    xylophone
    Are you saying that your husband will be 65 next week and has claimed his state pension?

    When did he start his employment with Royal Mail?

    Does he have at least 35 years paid or credited NI?
    • xylophone
    • By xylophone 21st Sep 16, 11:20 AM
    • 18,459 Posts
    • 10,387 Thanks
    xylophone
    The new State Pension - I'll keep it simple
    Have you obtained a new state pension statement?

    https://www.gov.uk/check-state-pension

    What is your starting amount?
    • rose28454
    • By rose28454 21st Sep 16, 11:34 AM
    • 4,351 Posts
    • 43,468 Thanks
    rose28454
    Are you saying that your husband will be 65 next week and has claimed his state pension?

    When did he start his employment with Royal Mail?

    Does he have at least 35 years paid or credited NI?
    Originally posted by xylophone
    Yes he will be 65 next thursday, he started with Royal Mail in about 1974 and took medical retirement in 2008 and has been drawing that pension since aswell as getting ESA until March 2015.
    • rose28454
    • By rose28454 21st Sep 16, 12:21 PM
    • 4,351 Posts
    • 43,468 Thanks
    rose28454
    Sounds like my may get a little more once his NI record is updated but, as his Post Office pension was contracted out, he won't get the full £155.
    Originally posted by Silvertabby
    Yes he realises that but though the amount was a bit low
    • xylophone
    • By xylophone 21st Sep 16, 12:34 PM
    • 18,459 Posts
    • 10,387 Thanks
    xylophone
    Your husband's state pension will be calculated under old and new rules and he will receive the higher of the two amounts.

    He was "contracted out" of SERPS/S2P for at least the 33 years he worked for Royal Mail, so see

    https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/447195/new-state-pension--effect-of-being-contracted-out.pdf

    In his case he will receive £119.30 plus any graduated pension to which he was entitled plus (possibly) some S2P from after 2002.

    Has the Administrator from Royal Mail Pensions been in touch concerning how his pension increases will be paid after he reaches age 65 and draws his state pension?

    This booklet is dated 2012 so he may have more up to date/personalised information.

    http://www.royalmailpensionplan.co.uk/sites/default/files/documents/rm_section_ab_guide_to_pension_payments_and_increa ses_16.08.12_0.pdf
    • rose28454
    • By rose28454 21st Sep 16, 12:50 PM
    • 4,351 Posts
    • 43,468 Thanks
    rose28454
    Your husband's state pension will be calculated under old and new rules and he will receive the higher of the two amounts.

    He was "contracted out" of SERPS/S2P for at least the 33 years he worked for Royal Mail, so see

    https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/447195/new-state-pension--effect-of-being-contracted-out.pdf

    In his case he will receive £119.30 plus any graduated pension to which he was entitled plus (possibly) some S2P from after 2002.

    Has the Administrator from Royal Mail Pensions been in touch concerning how his pension increases will be paid after he reaches age 65 and draws his state pension?

    This booklet is dated 2012 so he may have more up to date/personalised information.

    http://www.royalmailpensionplan.co.uk/sites/default/files/documents/rm_section_ab_guide_to_pension_payments_and_increa ses_16.08.12_0.pdf
    Originally posted by xylophone
    Thanks will check those links
    • frank777
    • By frank777 22nd Sep 16, 7:56 PM
    • 276 Posts
    • 120 Thanks
    frank777
    Have you obtained a new state pension statement?

    https://www.gov.uk/check-state-pension

    What is your starting amount?
    Originally posted by xylophone
    xylophone - my Pension Summary indicates
    Forecast if you continue to contribute until 5 April 2017 £130.58 a week - I don't work and I don't sign on, to get this I need voluntary class 3 NI for 2016/17
    £130.58 is the most I can get. Your forecast • is not a guarantee and is based on the current law •

    Simple questions, must have been asked before? Do I need to get them before the end of this tax year to get the extra increased weekly starting amount of around £4.45 for my State Pension due July 2017 Also is this extra payment backdated if I pay for the NI say 12 months after I draw my State Pension + do I need NI for 2016/17 (3 months worth) until July to get a little extra - every little helps
    Last edited by frank777; 22-09-2016 at 8:02 PM.
    • xylophone
    • By xylophone 22nd Sep 16, 9:28 PM
    • 18,459 Posts
    • 10,387 Thanks
    xylophone
    No to NI after April 2017.

    See

    https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/513609/CA5603.pdf
    • frank777
    • By frank777 26th Sep 16, 10:09 AM
    • 276 Posts
    • 120 Thanks
    frank777
    Just one more question xylophone* The Department for Work & Pensions website indicates I have until 5th April 2023 to pay extra voluntary contributions. If I wait until 2023 do you believe the Department for Work & Pensions computer is programmed to pay a lump sum in back dated payments or just the £4.45 a week.

    In other words, is it essential for me to get extra voluntary contributions before the end of the current tax year, to get paid the extra £4.45 on the 4th July 2017 in my case.

    see previous poster: rose28454 her husband is still waiting for his NI record and he retires in 1 week

    *as the law stands today
    Last edited by frank777; 26-09-2016 at 3:45 PM.
    • xylophone
    • By xylophone 26th Sep 16, 12:51 PM
    • 18,459 Posts
    • 10,387 Thanks
    xylophone
    https://www.gov.uk/government/publications/new-state-pension-handouts/four-ways-to-increase-your-new-state-pension

    You should telephone to check your situation but as far as I can see, if you want the extra from SPA you will need to contribute now?
    • frank777
    • By frank777 26th Sep 16, 3:02 PM
    • 276 Posts
    • 120 Thanks
    frank777
    Thanks xylophone I will pay the full amount by Faster Payment nearer the end of the financial year (I will get a deadline from Department for Work & Pensions) Hopefully they will have my complete NI record by that time, so I can make payment without fear of wasting my money - what with my graduated pension, serps, contracting out - I went for the default option every time - wait and see appears to be my best option.

    Your forecast
    • is not a guarantee and is based on the
    current law

    With Department for Work & Pensions it's a case of "Let the buyer beware" there is no automatic right to a refund
    Last edited by frank777; 26-09-2016 at 3:44 PM.
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