Will NI Contribution Credits still continue in the Single Tier Pension

JAG61

This week I found out that despite qualifying for a NEW ZEALAND pension if my husband and I return home to the UK , NZ will not pay it and we would need to claim a UK pension.

The DWP confirmed this morning that under a reciprocal agreement the Current system would match NI contributions week for week with time spent in NZ - which is great

Except the system is changing.

I am wondering how this would work if we returned after the implementation date of the Single Tier.

We have a huge gap in our contributions record from 96 onwards (which will be matched on our return) - should that be updated with NI credits up to April 2016 and fed into the Foundation calculations?

Any thoughts or help would be appreciated

drumtochty

What ageas are you.

How many years UK contributions have you each got prior to leaving the UK.

How many years contributions will you each have fron NZ when you return.

Give us your best guess of when you will return and what age you will be then.

Will you still be working when you return.

Otherwise how do you expect us to give you some idea if you are postig very little data to work on.

JAG61

Hi there

Both 53 both to retire at 67.

Both 20 years all contracted out.

Both 18 years residency NZ.

Thats 38 years in current system to date depending on when residency is applied if at all.

greenglide

I am wondering how this would work if we returned after the implementation date of the Single Tier.

There are no changes to the legislation for recip agreements.

They may renegotiate the agreement but maybe not because it works both ways.

If it says "basic pension" then does not really fit well with the nSP as there is no equivalent apart from the standard nSP amount.

If you end up without the necessary 10 years contributions to qualify for any pension under the new system (and you need a minimum of 10 years to get anything - even the foundation amount under old rules) this can be satisfied using the foreign contributions.

JAG61

Many thanks Greenglide.

Thats good news that it is likely to remain.

My estimated Pension statement for Current system shows 20 years NIC. giving me estimated 75GBP foundation value. If we returned prior to Implementation date I wonder if they would apply credits to NIC record and re-evaluate.

Returning Post Implementation I wonder if they would apply NIC credits from Single Tier Implementation date only.

As I have 20 years UK qualification in existing system will I automatically qualify in new system.