qualifying years for state pension.

twizzel

When I got my state pensions statement I actually had more years than I thought I should. Turns out that I had 3 years starter credit for being in education when I was 16, 17 and 18 years old.
I believe the government removed this 'starter credit' in 2010 but anyone who already had it, kept it.

So my tip is, get an official statement.

I also suggest that if you think you have over 30 years, don't use the e-service because the statement that is delivered will only say you have 30, because this is the maximum needed as of today, and not quote the actual no. of years. I was told this by the NICO office earlier this week.

Camdoon

Hi there,

I am a Civil Servant not due my state pension until 2021 but will most likely give up working for the CS in 2017. I will have 35+ years contracted out NI contributions and perhaps one or two from before I joined the CS. What will my pension be, nearer £100 or £144?

fred_karno

twizzel wrote: »

When I got my state pensions statement I actually had more years than I thought I should. Turns out that I had 3 years starter credit for being in education when I was 16, 17 and 18 years old.
I believe the government removed this 'starter credit' in 2010 but anyone who already had it, kept it.

So my tip is, get an official statement.

I also suggest that if you think you have over 30 years, don't use the e-service because the statement that is delivered will only say you have 30, because this is the maximum needed as of today, and not quote the actual no. of years. I was told this by the NICO office earlier this week.

I got a statement on 2009 and that did show over 30 years - in fact it showed 39 years, so I am well over the proposed limit. Like you, i found i had 3 years for school years over 16. I've just started process of getting an e statement, by activating government gateway. From what you say I would be better off phoning for one.
I'm pretty sure I am ok for service etc. my concern is more about the contracted out deductions and what I will be left with. It seems fairly certain that with 15 years contracted out, I will be getting the current basic plus the surplus ASP rather than new single tier. Question is how much that will be and I don't think anyone knows.
The white paper says it will be a "rebate derived amount" applicable to the contracted out years that will be taken off single tier. However, Ros Altmann, the pensions expert has said in an explanatory guide on the web, that the rebate derived amount will be used for post 97 ASP deductions only - as pre97 the existing contracted out deduction catered for the clawback, but in 97 the clawback or COD was abolished.
Her web article is in pensions world.co.uk. It is article altmanns-qa-on-new-flat-rate-state-pensions-proposals-12322871.
If this is right the reduction from overall ASP will be any existing deduction shown in a statement, plus a further deduction for any years contracted out between 97 and 2002. It would make sense as it means the govt don't have to recalculate a new rebate for all those pre 97 years when there is already a calculation.

fred_karno

Camdoon wrote: »

Hi there,

I am a Civil Servant not due my state pension until 2021 but will most likely give up working for the CS in 2017. I will have 35+ years contracted out NI contributions and perhaps one or two from before I joined the CS. What will my pension be, nearer £100 or £144?

Ask for a pensions statement, but as all your service is contracted out, it is likely that the deduction from the new single tier will bring you down to around the existing £107 pension ( updated for inflation). Logic is that the employer -the govt in this case-and you paid less in to the state scheme and used it as part of the contributions to your civil service scheme. So part of your CS pension is the equivalent of the extra amount that the single tier scheme is giving to those who did not contract out. It is logical but still disappointing to all of us that were contracted out and thought our state pension was going up!

kidmugsy

daz378 wrote: »

.... so i have to work another 5 /6 years to get a pension....thank you mr osborne

What has Osborne got to do with you having to work the extra years?

angelsmomma

I have a pension forecast of 26 qualifying years. I retire in 2023. I am self employed with a NI exemption certificate.

I have a son under 12 and from what I have read can claim a credit for this from 2010 to 2013 (when he turns 12) adding another 3 years.

However I am not sure if this is cancelled out by the exemption certificate since I think that having self employed low earning with NI exmption also gives a credit.

Can anyone tell me if it is even worth claiming the credit for having a child under 12 since it appears I already have the 3 years covered by the exemption certificate.

Thank you in advance for any advice on this

SnowMan

angelsmomma wrote: »

I have a pension forecast of 26 qualifying years. I retire in 2023. I am self employed with a NI exemption certificate.

I have a son under 12 and from what I have read can claim a credit for this from 2010 to 2013 (when he turns 12) adding another 3 years.

However I am not sure if this is cancelled out by the exemption certificate since I think that having self employed low earning with NI exmption also gives a credit.

Can anyone tell me if it is even worth claiming the credit for having a child under 12 since it appears I already have the 3 years covered by the exemption certificate.

Thank you in advance for any advice on this

If you are claiming exemption from class 2 national insurance contributions because of low earnings as explained on the hmrc website then those years won't count as qualifying years.

So you need to get credits through caring for a child under age 12. You should be getting those automatically provided you are in receipt of child benefit. Probably worth ringing up the HMRC helpline just to confirm this via the number on this link

angelsmomma

According to the website it says you have to claim them unlike when it was home responsibility.

This new one has to be claimed at the end of the tax year after 2011

Specified Adult Childcare credits

New National Insurance credits were introduced by the government from the 2011-12 tax year. You may be able to get these credits if you care for a family member under 12 and you're an adult under State Pension age.
These credits count towards basic State Pension and certain Bereavement Benefits. You will have to claim the credits - they will not be added automatically to your National Insurance contribution record.

SnowMan

angelsmomma wrote: »

According to the website it says you have to claim them unlike when it was home responsibility.

This new one has to be claimed at the end of the tax year after 2011

Specified Adult Childcare credits

New National Insurance credits were introduced by the government from the 2011-12 tax year. You may be able to get these credits if you care for a family member under 12 and you're an adult under State Pension age.
These credits count towards basic State Pension and certain Bereavement Benefits. You will have to claim the credits - they will not be added automatically to your National Insurance contribution record.

As far as I am aware the credits are automatic provided you are a parent of a child under 12 claiming child benefit in your own name.

If the other parent is claiming child benefit then that is when you have to claim the credit.

The specified adult childcare credits post April 2011 which extended family members (such as grandparents, and brothers and sisters) who are caring for children can get, also have to be specifically claimed.

Adviceguide (the Citizens Advice website) says

Credits for parents and carers replaces home responsibilities protection. If you reach state pension age on or after 6 April 2010, any home responsibilities protection you have already received will be changed into credits for parents and carers.


You get credits for parents and carers automatically if you are receiving Child Benefit for a child under 12 or you are getting Carer's Allowance.

It isn't so clear on the HMRC website. Suggest you ring their helpline as I sugested earlier and post back here so we have clarity in case someone else asks the same question.

lobbyludd

HI - this is probably a really dumb question, but I cannot find out having googled....

do you have to have paid NI for the whole of a tax year for it to be a qualifying year?

I have a number of 1/2 or 3/4 years either side of going to university and doing my PhD, and whether or not these count impacts on whether I can get a full flat rate pension under the new scheme.

I've registered with the government gateway to get a forecast but will have to wait for the registration details to get through the post.

also do your "starter years for ages 16 to 19 count as years contributing serps/s2p or contracted out? - i'm trying to work out how many years I haven't been contracted out, to see if I can get to 35 of those before retirement.

apols if irrelevant .