New State Pension Guide

thunder65

I am 65 years old today, having paid a NI contribution for close on 45 years - 37 years as a Civil Servant, 8 years in the private sector. I finally received a pension award 5 days ago after applying over two months previously. Like so many others it came as a shock that I wasn't going to receive the maximum £155.65 that I assumed everyone was getting having contributed to the system all of my working life. A pensions forecast several years ago also confirming that I had sufficient contributions for a full pension and I couldn't improve on the situation. I never gave it another thought when they announced the new changes to simplify pensions, being an ex Civil Servant I should have known it would be anything other than simple. To get to the point I have been awarded £137.83 per week, almost £18 per week short of what I expected but judging by some posts a lot better than how others have ended up. I realise I was contracted out as a Civil Servant but my real annoyance apart from the money is there is absolutely no explanation in the award letter as to how the amount as been arrived at and I have no way of knowing if it has been correctly assessed. Like winning the lottery just be thankful for the payout!

xylophone

Had you applied for a state pension statement a few months ago, you would have been advised of your "starting amount" .

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/514293/your-state-pension-explained-apr-2016.pdf

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/210299/single-tier-valuation-contracting-out.pdf

You are not receiving any less than you would have done had the old system remained in place.

And as a Public Service Scheme member, your pre 88 and post 88 GMP increases will be indexed linked to CPI through your scheme- some (most?) members of private sector schemes will not be so fortunate.

https://www.sackers.com/wp-content/uploads/2016/05/1094_Sackers_PublicSector_Briefing_FINAL.pdf

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/520784/Guidance_on_the_operation_of_pensions_increase_legislation_for_public__service_pension_schemes_PU1941.pdf

bigadaj

thunder65 wrote: »

I am 65 years old today, having paid a NI contribution for close on 45 years - 37 years as a Civil Servant, 8 years in the private sector. I finally received a pension award 5 days ago after applying over two months previously. Like so many others it came as a shock that I wasn't going to receive the maximum £155.65 that I assumed everyone was getting having contributed to the system all of my working life. A pensions forecast several years ago also confirming that I had sufficient contributions for a full pension and I couldn't improve on the situation. I never gave it another thought when they announced the new changes to simplify pensions, being an ex Civil Servant I should have known it would be anything other than simple. To get to the point I have been awarded £137.83 per week, almost £18 per week short of what I expected but judging by some posts a lot better than how others have ended up. I realise I was contracted out as a Civil Servant but my real annoyance apart from the money is there is absolutely no explanation in the award letter as to how the amount as been arrived at and I have no way of knowing if it has been correctly assessed. Like winning the lottery just be thankful for the payout!

Just a small amount of research and investigation would have clarified this situation, if you want to get all your financial information from the daily mail then that's up to you, but don't complain when you finally realise it's a load of crap.

bigfreddiel

thunder65 wrote: »

I am 65 years old today, having paid a NI contribution for close on 45 years

But you haven't paid the full amount, as a civil servant you paid a reduced amount of NI. Did you not realise that?

So if you pay less you get less - that's fair isn't it?

Good luck and enjoy your retirement fj

Ianthedriver

I checked on the Government site.
It says "I will get £134 / week based on current contributions . It also says I have 39 years of full contributions. Retirement date is 8 years hence. When ( it states) I will get full pension of £155.65.
My question is. If I retire earlier, and make no further Contributions, will I still get the full pension payment when I reach official retirement age?

molerat

You have earned £134 up until April 2016. You need to make another 5 years of contributions to get to £155.65. No more contributions no more pension in addition to what you have already (except for inflation increases of course).

johnpr98

You have earned £134 up until April 2016. You need to make another 5 years of contributions to get to £155.65. No more contributions no more pension in addition to what you have already (except for inflation increases of course).

If Ianthedriver has 39 full contributions, why does he have to make another 5 years contributions to get full pension when you only need 35 years contributions?

I know I'm missing something vital here but I don't know what.

bigfreddiel

Ianthedriver wrote: »

I checked on the Government site.
It says "I will get £134 / week based on current contributions . It also says I have 39 years of full contributions. Retirement date is 8 years hence. When ( it states) I will get full pension of £155.65.
My question is. If I retire earlier, and make no further Contributions, will I still get the full pension payment when I reach official retirement age?

The problem is in the wording 'full contributions'

You most certainly have made full contributions for each year, but at a reduced rate. Confusing I know but that's the way it is.

If you have any old payslips that will tell you if your NI contributions were at the contracted in or out rate. Take a look and let us all know what it says.

Cheers fj

p00hsticks

johnpr98 wrote: »

If Ianthedriver has 39 full contributions, why does he have to make another 5 years contributions to get full pension when you only need 35 years contributions?

I know I'm missing something vital here but I don't know what.

You're missing the vital fact that transitional rules apply for those who have already started their working lives under the old pension legislation.

Anyone starting their working life this tear will get a full 'new State Pension' of £155.65 (in todays terms) if they get 35 NI years.

But people like Ianthedriver have obviously been contracted out for a good part of their working life and so been paying NI at a lower rate than is currently required.

On 6/4/16 their ' starting amount' under both old and new rules would have been calculated under old and new rules and the higher figure taken.

Old rules gives;
(number of NI years to max of 30/30) x £119.30 + any additional (SERPS/S2P) pension earned for being contracted in

New rules gives;
(number of NI years to max of 35 / 35) x £155.65 - any COPE amount for being cotnracted out

Going forward the distinction between being contracted in and out has disappeared and every new NI year adds 1/35th of £155.65 to that starting amount until the maximum amount is reached (or the person reaches retirement age)

johnpr98

Hi p00hsticks

That seems to be a good interpretation of the rules, Many thanks

I didn't pick up that Ianthedriver had been contracted out some of the time, I can now see that you and the other posters who responded have worked it out by the amount he'd quoted for 39 years.contributions.