Contracted out public sector pension pre 2016 - am I likely to receive full state pension?

busy_dad

Morning,

Apologies in advance if this has been covered before, but I could not find on a quick forum search.

If you have been on a contracted out public sector pension scheme prior to 2016 you are obviously only entitled to the basic level of state pension. However if you are well off retirement and will therefore now be contributing the full NI rate for several years to come, will this ultimately boost the state pension amount back up to the maximum? (will have >35 years NI overall including at least 20 more years to go from now on the full NI rate).

I am currently looking at pension provision overall and this is obviously a factor in the planning process. I'd like to avoid any nasty surprises later on!

Many thanks

bolwin1

You can check it on the government website (although you'll need to get a gateway id arranged if you've not already got one. It will tell you exactly what you'll get & how many more years you'll have to work to get the full amount.

https://www.gov.uk/check-state-pension

busy_dad

Great thanks - I never knew you could check that!

barbedhook

You need to get a pension forecast you will have a starting amount at 2016 then every year after that will add another £4.70 a week to your pension

GibbsRule_No3

barbedhook wrote: »

You need to get a pension forecast you will have a starting amount at 2016 then every year after that will add another £4.70 a week to your pension

Is the £4.70 not capped at so many years? The OP says he has 20 years to retirement, I don’t think he gets £4.70 for those 20 years, I could be wrong but am guessing it is probably around 6 years at most to counter the contracted out part that he was not getting before the 2016 pension change.

Dazed_and_confused

If you were entitled to exactly the maximum new State Pension or less then you are correct, the extra £4.70/year is capped at £164.35.

You can't have a start amount of say £125, which the op may have got at April 2016, and then have 20 lots of £4.70 added to make £200+ per week State Pension.

You do though have to pay the NI for 20 years (if earning enough)

barbedhook

Yes sorry you will only get the uplift in pension till you reach the £164

Paul_Herring

[Contracted out for a fews years, but] However if you are well off retirement and will therefore now be contributing the full NI rate for several years to come, will this ultimately boost the state pension amount back up to the maximum?

If you contribute for sufficient years, yes.

I was contracted out for (I think) about 15 years, but (according to the site linked to by bolwin1,) I'll have sufficient contributions for the full state pension by the time I'm 51.