Single Tier & Contracted out contributions

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tony4147 wrote: »

Is there a way of working it out what they will deduct for the SL pension?
I was "contracted out" from April 1990 (UNTIL?)

The 13 years will give me -
144/35= £4.11x13 =£53.48/wk

According to SL their valuation at SPA I will get a pension in the region of £3k/yr from the contracted out contributions if I don't take a lump sum.

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Is the amount deducted for contracting out of serps etc, only multplied by the number of years you were actually paying into a contracted out scheme?For example,if i was contracted out for 5 years in the 80's and then the company closed and my pension pot was bought by norwich union section 32.Will the single tier calculation just take into account the 5 years i was paying into the contracted out scheme OR for all the years since also?

tony4147

vvvvvvvvvvvvvvvv wrote: »

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Until 2012, when they stopped the contracting out

tony4147

SeekTruth wrote: »

On entry to the new Single Tier pension the OP's Foundation Amount will be the higher of:

1. Current system: £113.10/wk (This is the full basic pension for 2014/15), possibly plus some Additional Pension. [Might be worth the OP getting a State Pension Forecast if has not already done so to discover whether they are entitled to any Additional Pension.]

2. New System: £149/wk (guess at full Single Tier amount for 2014/15 based on Pension Credit Standard Minimum Guarantee of £148.35) minus the Rebate Derived Amount. On the information OP has provided we can only make wild guesses at the RDA.

So, all we can say is that the OP's Foundation Amount will be no less than £113.10/wk. Each additional year of National Insurance contributions after 2016 will gain a further £4.25/wk. Therefore a further 8 or 9 years' contribution after 2016 will be sufficient to reach the full Single Tier amount.

The question of the OP's Standard Life pension is interesting as it appears it has a GMP element. Perhaps someone can answer the following questions:
a) Does SL still have a commitment to pay the GMP even though the OP reaches standard retirement age after transition to Single Tier
b) Does any commitment for SL to pay the GMP disappear if the OP takes the SL pension before reaching the standard retirement age

The SL plan has no GMP