Home Responsibilities Confusion

seven-day-weekend

Good luck, keep us posted!

vix2000

kindofagilr wrote: »

So that to me implies you can have 22 HRP years (but in your case 20 1979-2009) but I am unsure how they are converted now (as SP is now calculated using fractions rather than just simply how many years you've paid)

Thanks so much for the info. I think 1979-2009 is 30 years so would that mean I should have 22 years HRP when I get my forecast? If so, with the 4 years I worked I should only be around 4 years short.

kindofagilr

vix2000 wrote: »

Thanks so much for the info. I think 1979-2009 is 30 years so would that mean I should have 22 years HRP when I get my forecast? If so, with the 4 years I worked I should only be around 4 years short.

Of course it is lol (sorry), But there is a maximum number of HRP years allowed. I think its 20 (off the top of my head) I've def seen cases where a customer has had 19

BUT that was when you had to have 39 years, now its 30 there needs to be some sort of calculation done on your HRP years to transfer it to the new wy of calculating pensions IE a fraction

This is where I am lost as I left work in Feb for Maternity leave, I am not due back till Jan 2011 so I havent had my pensions reform training yet.

Either way when you get your pensions forecast letter it will tell you how many HRP years you have and how they have transferred them into the new way and how many qualifying years you have

seven-day-weekend

Undr the new system which will apply to the OP I think 12 years is the maximum you can be credited. But as you say she will only need a total of thirty years.

kindofagilr

Oh here is a little bit about HRP from April 2010

If you reach State Pension age on or after 6 April 2010, complete tax years of Home Responsibilities Protection you have already built up before 2010 will be converted into qualifying years up to a maximum of 22 years.These qualifying years will also count towards bereavement benefits.

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/Caringforsomeone/DG_10018691

seven-day-weekend

Ah right OK, I thought it was only 12 but it is 22. Seems a bit odd when the maximum you could get under the old scheme was 19 years and yet you needed 39 in total.

Oh well, It makes it easier for people to get a full pension, which is what the new legislation is partly about.

seven-day-weekend

I know why I thought it was twelve years. If you read the link below it says to receive the HRP credits you must be receiving Child Benenfit for a child under twelve. But of course, there could be several children, so it is possible to get a maximum of 22 years.

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/Caringforsomeone/DG_10018691

Changes from April 2010 for parents and carers

Home Responsibilities Protection is being replaced for people reaching State Pension age on or after 6 April 2010.
From 6 April 2010, parents and carers will be able to build up qualifying years through new weekly credits for the basic State Pension and additional State Pension. If you are a parent or carer, you will get a credit for each week in which you:

• are getting Child Benefit for children aged under 12
• are an approved foster carer
• are caring for at least 20 hours a week for people who are getting Attendance Allowance, the middle-rate or highest-rate care component of Disability Living Allowance, or Constant Attendance Allowance, or the need for care has been certified

Some of the detail around these changes is subject to further parliamentary approval.
There will be no limit to the credits awarded to parents and carers after April 2010, as long as you meet the qualifying rules.
If you reach State Pension age on or after 6 April 2010, complete tax years of Home Responsibilities Protection you have already built up before 2010 will be converted into qualifying years up to a maximum of 22 years.These qualifying years will also count towards bereavement benefits

kindofagilr

Yeah that totally makes sense

I dont know why is 22 now when you like you say need less years for a pension, unless it is just to make sure more people are entitled to some pension.

vix2000

Thanks again for all the replies. On looking at the website I can't see much difference between getting a full pension and getting pension credit. If this is so why do people bother to pay up missing years?

seven-day-weekend

Because Pension Credit is means-tested which means if your partner has an income you may not be entitled to it.

State Pension an S2P (SERPS) are not means-tested.