contracted out?

LateStarter17

Hi, please bear with me, I've drifted for years thinking I'ld have a pension because I was always in work, and am trying to get a handle on it, turns out I have no work pensions (have to claim refunds - short contracts/temping contracts) but felt reassured that I had 16 qualifying NI years (am 40) - some were "bought back" by me. Anyway, now I'm on a permanant contract with the NHS but only have a short amount of what they count as continuous service (in terms of pensions: 1.6 full time equivalent years) and have to refund all other contributions to NHS and teachers pensions.

Now I'm worried by reading about "contracting out" as I've at least been building up NI years I thought, am I correct in thinking that the current NHS pension is not a contract out deal and I will from now on be able to build up my remaining 11 years through NI (incase I don't build up much through NHS)?

Thank you

LateStarter17

sorry, remaining NINE years, although it may increase so I'll aim for more

Silvertabby

Yes - the NHS pension scheme ceased to be 'contracted out' from April 2016.

LateStarter17

good, thank you, and the NHS years where I was paying pension but they don't "count" and have to be refunded? (since 2003) they won't affect my NI/state pension will they? since they don't actualy qualify for NHS pension. On gov gateway I'm currently showing up as having those years as qualifying years

molerat

You need to look at your current amount in £s and calculate from there how many years you need to contribute going forward, you may need more than 35 years for the new full pension. All years will be shown as qualifying years but you may have a COPE amount shown. I am not sure how refunds from those contracted out schemes will affect your contracted out status, and COPE amount, for those periods. Post up all the figures given on your forecast. You have another 28 years to go so no need to panic.

Silvertabby

good, thank you, and the NHS years where I was paying pension but they don't "count" and have to be refunded? (since 2003) they won't affect my NI/state pension will they? since they don't actualy qualify for NHS pension. On gov gateway I'm currently showing up as having those years as qualifying years

If you were refunded from contracted out pension schemes, then your refund would have been subject to deductions for tax - and the NI rebate you received for being contracted out. As long as your pension scheme carried out the correct administrative procedures, your and your employer's NI rebate would have been paid to DWP and those years will therefore count towards the new single tier pension.

LateStarter17

Thank you for the replies so far, I'm locked out of gov gateway at the mo so can't rest my password at the moment. Why would it say a year counts if it doesn't?

xylophone

I'm locked out of gov gateway at the mo so can't rest my password at the moment.

Have you tried the helpline?

https://www.gov.uk/government-gateway

I am very puzzled by your references to nine and eleven years.

https://www.gov.uk/new-state-pension/eligibility

Did you actually obtain a statement showing your starting amount as at 6.4.16?

xylophone

And did you ever do as suggested in post 11 below?

https://forums.moneysavingexpert.com/discussion/comment/72371311#Comment_72371311

LateStarter17

my maths was out was v tired when I posted, according to gov gateway I have 16 out of 35 years, so I need 19 more not 9, that's what I meant. I didn't know that where it says you have a year it doesn't mean you do though.

LateStarter17

xylophone there is nothing to buy into. I don't yet have the min requirement for a NHS pension. Once I have 2 years I will top it up.