taktikback wrote: »
I must admit, I'm a bit confused about the rebate derived amount. In 2016, I will have 16 years contracted out (final salary pension) and 14 years contracted in - I will have 36 years NI years.
It seems to me that if the rebate derived amount is applied in 2016 rather than my SPA of 2029, then the 14 years contracted in years have effectively no value because the 16 years contracted out will bust me back from £144 to about £114.
If I had been contracted out for the whole 30 years - The foundation amount would be the standard pension of £110 - because that is the higher valuation of old and new scheme.
Or should the valuation under the old scheme be used? i.e £110 plus the 14 years contacted in- around £140?
The problem is the rebate derived amount/ COD because under the old rules, it wouldn't be applied until SPA which brings into play all of the contracted in payments from 2016-2029...
you can see why this has confused me....
zagfles wrote: »
You should get the full flat rate if you work up till 2029, because at the changeover you'll have over 30 years which will give you at least the full basic state pension, you then add £4.11 (approx) per year till you get to the full rate while you're still paying NI/getting credits, so 13 years worth will get you the full £144.
Just_landed wrote: »
For those that are retiring before the changeover read this, link:-
taktikback wrote: »
As of 2016 , I would have paid 36 years NI so should get the basic pension of £110. So if I stopped working that year - would I get no additional S2P credit for the last 14 years contracted in? Seems harsh
The Minister of State, Department for Work and Pensions (Steve Webb):
In advance of the Pensions Bill Second Reading in the House of Lords today, I can confirm that the minimum qualifying period for the new single-tier pension will be set at 10 qualifying years.
In our White Paper, “The single-tier pension: a simple foundation for saving”, we said that individuals reaching state pension age after the new system is introduced—in April 2016—would need between seven and 10 qualifying years in order to receive any state pension. In response to the Work and Pensions Select Committee’s recommendations, in the Pensions Bill we have limited the minimum qualifying period to a maximum of 10 years. Today’s announcement proposes that the minimum qualifying period be set at 10 qualifying years, with the intention to lay regulations (under clause 2(3) and clause 4(2) of the Pensions Bill) to this effect in due course.
Putting in place the minimum qualifying period will help ensure that state pension expenditure is targeted at individuals who have made a significant social or economic contribution.
People can build qualifying years in many ways; for example by paying national insurance or by receiving credits for a wide range of reasons, including caring for children, caring for others, or being too ill to work.
We have previously published the estimated effects of a 10-year minimum qualifying period in the impact assessment for the single-tier pension.
Incl. free 0% overdrafts and railcards
Here's what we've found...
Here's what you need to know