State Pension - HRP

kavomix

Hey all,

I have a quick query regarding the state pension (and as the pension service computers are down until next year and the site doesn't answer my question I have decided to turn to you knowledgeable people)

Under the old pension rules HRP was given to women who looked after children under 12, and they received a maximum of 20yrs (i believe). In these rules the HRP credits were to be taken off the qualifying years. So the 40yrs would be reduced by to 28 if a woman looked after a child for 12years. Then her pension would be based on her working years against the reduced 28yrs for a max state pension.

Under the new rules the HRP is now applied as a credit to the qualifying years. So the number of years for a max state pension will be 30, and any years spent looking after a child under 12 will count as a year's contribution. The two questions I have are:

1) Is the maximum years for HRP still set at 20, or has it been reduced/increased?
2) If a women has not worked her whole life, will she be credited these years and now be entitled to receive her own state pension. (this one is just for my own curiosity, the previous relates to my mother)

I await your replies

seven-day-weekend

I don't know the answer to your specific question, but HRP only applies after 1978, so if your mother's childcare days were before this then she definitely won't be credited with it.

Someone will be along soon to answer in more detail.

kavomix

Nope child caring days started in 79, before that she worked for 10 years. Just trying to guesstimate her state pension.

margaretclare

It's important to know whether she paid full NI contributions when she worked, or whether she had changed to the 'small stamp' i.e. married women's reduced contribution.

Margaret

CIS

Under the old pension rules HRP was given to women who looked after children under 12

you could get 15yrs per child - from 6 april after the d.o.b to the 5 april prior to the 16th birthday.

2) If a women has not worked her whole life, will she be credited these years and now be entitled to receive her own state pension. (this one is just for my own curiosity, the previous relates to my mother)

As I understand it the 1st & 2nd pension conditions have not been altered.

To get any pension , you must ( a bit simplified, but) :

1) Have at last 1 year of paid contributions (1,2 or 3)

and

2) have a number of qualifying years equal to at least a minimum of 25% of your requisite years ( i.e if you need 40yrs, you need qualifying 10yrs for any pension)


Therefore under these rules a woman would still need to have paid at least 1 year of conts in order to qualify for a pension,and she could then use the new HRP rules to add your HRP years to that year.

EdInvestor

kavomix wrote: »

Under the old pension rules HRP was given to women who looked after children under 12, and they received a maximum of 20yrs (i believe).

Old rules it was under 16, new rules under 12.

In these rules the HRP credits were to be taken off the qualifying years. So the 40yrs would be reduced by to 28 if a woman looked after a child for 12years.

Yes, but it would be a max of 15 years taken of the required 39 years, so the women would need 24 years.She would additionally need a minimum of 10 years to qualify for any pension at all.At present if she has not paid any NI contributions in the years 1996-2007,she can obtain credit for 10 years by paying up in arrears.

Under the new rules the HRP is now applied as a credit to the qualifying years. So the number of years for a max state pension will be 30, and any years spent looking after a child under 12 will count as a year's contribution.
1) Is the maximum years for HRP still set at 20, or has it been reduced/increased?

Under the old rules it's 15, under the new rules it's 12, but they are qualifying years.
.

2) If a women has not worked her whole life, will she be credited these years and now be entitled to receive her own state pension.

She needs to have been receiving child benefit in her own name to be credited with these years and also to have the minimum amount of NI conts.

kavomix

Thanks for those replies. I'll check a few things out to confirm the stamp paid. But I believe it was not the "small stamp" as she was working for at least 5yrs before she got married.

Under the old rules it's 15, under the new rules it's 12, but they are qualifying years

Does this then mean that if she obtained 15yrs of HRP it would only be converted to 12yrs contribution under the new rules, or is it a straight forward swap and only affects women afer new rules.

She would additionally need a minimum of 10 years to qualify for any pension at all.

have a number of qualifying years equal to at least a minimum of 25% of your requisite years ( i.e if you need 40yrs, you need qualifying 10yrs for any pension)

Does this rule still exist now i.e. she is required to have 10 years. Because I believe she currently has 10 or 11, but will double check if this is the case. Or is it 25% of the 30 years meaning 8yrs.

At present if she has not paid any NI contributions in the years 1996-2007,she can obtain credit for 10 years by paying up in arrears.

This is really where my query comes from. Is there a set maximum under the new rules for amount of HRP you can receive. As then my mother might be entitled to somewhere near the full state pension.

EdInvestor

The old rules apply to anyone who is retiring before April 2010.The new rules apply to peoiple retiring after that date. Each individual is thus affected either by the old rules or the new rules, but not both.

kavomix

So to clarify, retiring after 2010, any HRP will only be earnt until the child is 12. And the minimum 25% for qualifying years will stand for the new lower 30yr state pension.

I'll try and work out whether she needs to buy any added years, but will wait until the pension service computer system comes back up online next autumn

thanks everyone for your help

noh

After 2010 there is no minimum for qualifying years and no longer any requirement for any of these to be paid contributions.
I have searched for a reference and found these explanatory notes for the White Paper (page 4) http://www.dwp.gov.uk/pensionsreform/pdfs/fs_carers_credit.pdf
This has now passed into law.
Also it appears that there is a maximum number of years that can be earned as credits , 22 years according to http://www.opsi.gov.uk/acts/acts2007/ukpga_20070022_en_2 section 3.

Nigel

maypole

Kavomix

You can ring the pension office, 0845 300 0168 they cannot send you a forecast as the computers are not ready until May I was told, but they can tell you how many years you have in and if you need to buy any. I have just spoken to a very helpful person. However if you are going to get your pension before 2010, you can get forecast on line.