Pension Act 2007 and Old HRP

EdInvestor

ALIBOBSY wrote: »

You get 52 class 3 credits ie one full year for every full year of exisiting HRP. Not 0.5 years a full year. However this is limited to 22 years for basic "your own conts" pensions ie cat a and for married womens increases ie cat b pensions.

So you need to have made 8 years of actual NI contributions while at work in order to get the max 22 years of HRP for a full BSP?

Given the NI contributions are now done on a weekly basis this should be very helpful for part time and seasonal employees, who otherwise didn't get any NI credits for their work because they weren't employed for a full year.

ALIBOBSY

EdInvestor wrote: »

So you need to have made 8 years of actual NI contributions while at work in order to get the max 22 years of HRP for a full BSP?

Given the NI contributions are now done on a weekly basis this should be very helpful for part time and seasonal employees, who otherwise didn't get any NI credits for their work because they weren't employed for a full year.

If you have 22 yrs of HRP you would need just 8 qualifying yrs to get the full pension. These can be from PAYE, paid conts , vol conts or even benefit credits. These new rules do seem to be simplifying the system and like you say for people who work seasonally definately better. HRP used to only apply for full tax yrs so a week by week award is good news for stay at home mums and carers as well.
Personnally it will help me qualify for a full pension (with baby 3 on the way my working life has been broken up with child care) but ironically the new legislation also means I can't retire until 67 lol.
ali x

vix2000

thanks ali. still a bit confused with the old and new regs. I can't find my forecast, but it was a few years ago anyway. I'm sure it said 12 yrs contributions.

I didn't work from 1979 - 1983 then 1985 until 2 yrs ago as I was on severe disablement allowance, but got child benefit for children under 12 continuously until 2003. from 1983 until 1985 I worked sporadicaly and various hours, but still recieving child benefit. That makes 22 yrs hrp not 12? Is 12 the maximum?

I'm sure lots of single mums like me think hrp is giving them credits towards a pension. Do they not tell you if you need to pay something?

ps. hope the contractions come soon. I still remember those last few weeks!!! GOOD LUCK.

ALIBOBSY

Hiya Vix if I were you I would get a current forecast just to check what is showing so you can see now if you need to do anything. The trouble with HRP old regs was you only got full years so any years where say you worked and paid conts even for a short period you lose the HRP for that tax year. Same with benefits. HRP as I understand it applied for full tax years only and in years where no other credits have been paid/credited.At least the new rules are fairer in that it is now a week by week credit not all or nothing for the year. I think the period you were on SDA would give you benefit credits so you wouldn't get the HRP for the same period.
Worth a look at an up to date pension forecast.
Ali x (still with bump lol)

a&akay

Done a bit more digging since OP and found the following. I have also claimed back the 4 month's Cl 3 contributions allowed between 25 May 2006 and Sep 06 when I was written to to explain!? the new rules, payment awaited.

These notes refer to the Pensions Act 2007 (c.22) which received Royal Assent on 26 July 2007
PENSIONS ACT 2007



EXPLANATORY NOTES

35. For those people reaching state pension age on or after 6 April 2010, each complete year (subject to specified upper limits) of home responsibilities protection awarded under the existing rules of the scheme will be converted into a qualifying year for basic state pension and relevant bereavement benefits.

CIS

HRP as I understand it applied for full tax years only and in years where no other credits have been paid/credited

HRP was only credited for full years of entitlement however having earnings or benefit credits during the year did not remove HRP for that year unless the earnings/credits made that year a qualifying year.

Will you need HRP?
You will need HRP if the amount of your earnings in the tax year is
less than the level needed to make the year a qualifying year. If you are
getting benefits such as Incapacity Benefit or Carer’s Allowance, you
can be credited with earnings and so will not require HRP.
HRP can cover each tax year from 6 April 1978 in which:
you do not work at all and have no qualifying earnings for the
full tax year

or

you do some work but your earnings for the tax year are not

enough to make it a qualifying year.
Alternatively, even if you can get HRP, you may still get a higher rate
of State Pension if you pay Class 3 (voluntary) contributions to make
up the year into a qualifying year.
For further information request leaflet CA08 National Insurance
voluntary contributions from your pension centre or social security
office.

a&akay

Got my 4 month's contributions cheque today.