New State pension

rammy007

Yes I have had the same job for 32 years,it says on the statement which I received in August £13.61 which is additional state pension and graduated retirement benefit so I don't know why this is,last years said £113.10 and £12.22,totalling £125.32.

ajbell

Same job, but what age did you join the pension scheme?.

rammy007

Age 17 in 1984

p00hsticks

rammy007 wrote: »

Yes I have had the same job for 32 years,it says on the statement which I received in August £13.61 which is additional state pension and graduated retirement benefit so I don't know why this is

Additional state pension is discussed here - it is possible to accumulate some whilst being contracted out.

https://forums.moneysavingexpert.com/discussion/5322612

I also believe there was also a period where you were automatically creditted with "contracted in" years between the ages of 16-18 if you were still in education

rammy007

I was on a yts scheme for the first year of my employment 1983-1984 ,know I have got an extra years contribution than I worked I did query this with pension people because my o/h had exactly the same and they left school the year before me but they said it was from the tax years when you were 16,o/h bday was April mine is October .Will have to wait and see what happens next year.

jamesd

rammy007 wrote: »

surely the foundation amount is based on the rules after April 2016

It isn't and you should be glad it isn't. The after flat rate rules pay less for a person who was mostly contracted out than the before flat rate rules. So you get more using the before rules and that's the amount that will be your foundation amount. It's the higher of the calculations for the two rules.

rammy007 wrote: »

I don't see why it shouldn't add 2015/2016 on because after all it's another years contributions ,if not surely that year is lost.

It's not lost, it just doesn't add any more basic state pension because you're already at the maximum basic state pension entitlement. Under current (not flat rate) rules you can't accumulate any more basic state pension however many more years you work. Same for anyone else who has worked for 30 years already.

Under the flat rate rules a person who has reached the flat rate cap will stop accumulating any more. Way before the cap under current rules, which is around £250 a week.

What does increase for a person who is not contracted out is the additional state pension, which is the earnings-related part. And actually it's possible to get a bit of his even while contracted out. However the contracted out deduction tends to eliminate most or all of this earnings-related part. the contracted out deduction is there because the contracted out pension scheme is responsible for paying this part of your state pension as part of its pension benefit, so having the state pension do it would be paying twice for the same contribution.

rammy007 wrote: »

The amounts I was given were £13.61 and £115.95 totaling £129.56

If you got that before this year you can now ask again and it'll give you a statement telling you your current foundation amount. That might go up a little once the current tax year is included. Older statements used the old rules, not the new ones. the current ones for over 55s tell you the right amount under the higher of old and new rules ways of calculating.