Shortfall in National Insurance Contributions

KatyJ

Hi All, I found talking to HMRC/NI office helpful although I did have to study their figures quite closely to sort it out.
Have a question tho' to which I haven't yet got the clearest answer - does anyone know if (a few) years working/contributions made abroad in the EU count as qualifying years for my UK pension??

alanwsg

OK, apologies in advance if this has been answered but I just got one of these letters and have been struggling through this thread without any useful result.

The letter says I have 28 years which count towards a basic state pension but I need 30 to get the full amount.

But, I have retired early and I have a deferred pension waiting for me when I reach 60. This pension is with BT, originally I joined the GPO so it is a good final salary scheme (yeah I know what you're all thinking: "you lucky bu**er").

Am I right in thinking that I am somehow "contracted out" of the state scheme and don't need to worry about this?
Or is it a problem I need to sort?

Thanks in advance.

EdInvestor

alanwsg wrote: »

The letter says I have 28 years which count towards a basic state pension but I need 30 to get the full amount.

There are 2 state pensions, the basic state pension, and the state 2nd pension (S2P). You will need to pay voluntary contributions for 2 more years to get the full basic pension.

But, I have retired early and I have a deferred pension waiting for me when I reach 60. This pension is with BT.Am I right in thinking that I am somehow "contracted out" of the state scheme and don't need to worry about this?

Yes, you will have been contracted out of S2P via the BT pension scheme, so no need to worry about the 2nd state pension.

oldandgrumpy

Edinvestor,
If you are interested, I have a note from the HRMC. as follows
State Pension: Purchase of Voluntary National Insurance Contributions

For all staff dealing with State Pension enquiries, including Future Pensions

Secretary of State announced today 24 October 2008 proposals to allow those individuals who reach state pension age between 6 April 2008 and 5 April 2015 and already have 20 qualifying years (taking into account useable full years of Home Responsibilities Protection) to buy up to an additional 6 tax years of voluntary contributions over and above those that can be purchased under the current time limits. Full details of the scheme are not yet available, but you may get enquiries from customers about the new proposals, please use the lines to take below.


Lines to take:

• The proposals will apply to individuals reaching state pension age between 6 April 2008 and 5 April 2015 who already have 20 qualifying years on their national Insurance record taking into account any useable full years covered by Home Responsibilities Protection or by voluntary contributions paid under existing legislation.

• It will allow such individuals to purchase an additional 6 tax years towards their State Pension over and above the existing permitted time limits for voluntary contributions back to 1975, when voluntary contributions were first introduced. .

• Full details of the new proposals are not yet available however it will be based on the existing arrangements for paying voluntary contributions so that a woman would not be able to pay voluntary contributions for any year covered by a married women’s reduced rate election.

• The legislation is planned, subject to Royal Assent, to be implemented from April 2009. Customers will not be able to pay for any voluntary contributions under the legislation until it is implemented.

My wife wants to reclaim for the years 91/92 to 95/96. to make 100%. I guess the above means she will be able to, as of next April.

bestpud

Would the above changes to voluntary contributions (allowing people to pay for up to six more years) apply to someone who reached retirement age in 2007 but has deferred their state pension until they are 65 - ie. 2012?

babababor

bestpud wrote: »

Would the above changes to voluntary contributions (allowing people to pay for up to six more years) apply to someone who reached retirement age in 2007 but has deferred their state pension until they are 65 - ie. 2012?

Retirement age for men is currently 65, and you indicate you will be 65 in 2012. Yet you also state you reached retirement age in 2007!! You cannot defer your state pension until you are 65. it is not due until then. But you can defer it to a date after your 65th birthday (minimum deferral 5 weeks)

If you retired from work in 2007 at age 60, and had a minimum of 30 NI contributions, then there would be no need to make any voluntary contributions since you would have sufficient for a full pension in 2012.

oldandgrumpy

I wonder if bestpud is a lady. If she is, and has at least 20 qualifying years, I think she can buy up to 6 more years now. On my wifes pension forecast some of the later years, ie 2002 to 2007 could be bought out up to 2013....4 years after my wife reached 60. Again I wonder if bestpud has deferred her pension or just hasn't claimed it!

bestpud

oldandgrumpy wrote: »

I wonder if bestpud is a lady. If she is, and has at least 20 qualifying years, I think she can buy up to 6 more years now. On my wifes pension forecast some of the later years, ie 2002 to 2007 could be bought out up to 2013....4 years after my wife reached 60. Again I wonder if bestpud has deferred her pension or just hasn't claimed it!

Yes, I am female, but only 37!

I am asking for my mum.

She was 60 last year (2007) but is still working and has deferred her state pension and so won't receive it until she is 65. I'm not 100% sure what she means by this but I can ask if need be.

She has always worked but paid the married womans stamp for years and when she saw this new ruling, she wondered if she could add to her pension now, because she isn't actually receiving it yet iyswim?

She knows it is a very long shot but thought if you don't ask...

oldandgrumpy

Sorry, no offence meant. Your mum should get a pension forecast anyway. It's free, like her bus pass, prescriptions etc.

seven-day-weekend

Bestpud, I don't think buying more years will help if she has always paid married women's stamp.

If she DOES have any pension in her own right, it will be well worth getting a Pension Forecast and taking it from there as it will tell her these things

http://www.thepensionservice.gov.uk/state-pension/forecast/home.asp
.