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State pension estimates for 2016 +

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  • roxy28
    roxy28 Posts: 670 Forumite
    Ninth Anniversary
    SeekTruth wrote: »
    It is true that contracting out has reduced your father's state pension entitlement from what it would otherwise have been, but his pension scheme (LGPS) had to meet certain conditions to enable contracting out. State Pension forecasts used to show explicitly the Contracting Out Deduction (COD), but now they just show the result after the COD has been applied. So, his £23.35 ASP+GRB is what remains after the COD has been applied. Obviously I have no knowledge of his particular case, but for the sake of explanation assume his COD was £100. In that case he would have accumulated a total of £123.35 of GRB/SERPS/S2P over the years, which after the deduction of the £100 COD leaves a net AP of £23.35.

    Incidentally, some may wonder how your father gained any AP if he was always contracted out. Firstly, his GRB is from pre-1975 and, if I remember correctly, contracting out didn't apply. I don't think he could gain any net AP from SERPS (1978 - 2002). Under S2P (2002 - ) it is possible to gain AP even though contracted out as long as your pay isn't too high. Furthermore, you say your father left the council in 2006, so maybe he has had contracted in employment since then.

    You have given a lot of detail, thanks.

    In 2006 he finished on ill health so was on incapacity till 2012, not payed into any pension since finishing work.
    Not sure how NI payments are worked out since 2006,
    maybe the ASP gains are a mistake on the pension estimate? but thats what the statement says.
    :T
  • greenglide
    greenglide Posts: 3,301 Forumite
    Part of the Furniture Combo Breaker Hung up my suit!
    So he has been receiving Incapacity Benefit?

    That carries NI credits and since the S2P replaced SERPS a person receiving IB would earn AP from this. The change to S2P carried benefits to the low paid and receiving various benefits.
  • roxy28
    roxy28 Posts: 670 Forumite
    Ninth Anniversary
    greenglide wrote: »
    So he has been receiving Incapacity Benefit?

    That carries NI credits and since the S2P replaced SERPS a person receiving IB would earn AP from this. The change to S2P carried benefits to the low paid and receiving various benefits.


    Yes he was on IB till 2012.

    Thanks for the reply.
    :T
  • molerat
    molerat Posts: 34,558 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Applied for mine on 22 Oct and received it this morning, £75.33 new and £129.91 old rules. ;)
  • kevkj
    kevkj Posts: 88 Forumite
    Just received my official forecast on the current system .I am 51
    I have 35 qualifying years £113.10
    Additional and gradudated £ 18.85

    Total £129.95

    This is more than i expected after contracting out mid 80s and returning only 2 years ago.

    I plan to retire at 55 so will gain another 3-4 years at £4.00 so looks like i will be at £140ish so happy with that. God knows what it will be on the new system. I just hope they never drop the old one.
  • greenglide
    greenglide Posts: 3,301 Forumite
    Part of the Furniture Combo Breaker Hung up my suit!
    I plan to retire at 55 so will gain another 3-4 years at £4.00 so looks like i will be at £140ish so happy with that. God knows what it will be on the new system. I just hope they never drop the old one.
    Once nSP comes in at 6/4/2016 you should be able to get some extra years via voluntary contributions (if allowed after you have 35 years) or become self employed.

    Remember that from 6/4/2016 every qualifying year adds onto the £129.95 (revalued by inflation?) until you reach the full nSP rate.
  • Just got my statement today:

    New Rules: £82.99 per week
    Old Rules: £154.90 per week

    (about 8 years contracted out)

    I'll go with the old rules please.
  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Bootsox wrote: »
    This "contracting out" is a state sponsored scam. You contract out, still pay a fortune in NICs anyway and, in return, you get a lower pension.

    Well, I contracted out for only a few years into a DC pot which is now worth about £60k. That's worth about £46 a week in today's terms and I doubt I'd have got that much extra if the money had been handed to HMG instead.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
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