You were contracted out....

billn

gardner1 wrote: »

I'm sorry but how do you not realize you've contracted out do people not check

Check what, in both jobs I had were I was contracted out, one for 12 years and one for 22 years I was never told I was being contracted out and never signed anything to be contracted out.



I may be wrong but I don't think I could have "contracted in" even if I had known and wanted to.



I like many others only found out when I got a State Pension forcast.

xylophone

Check what, in both jobs I had where I was contracted out, one for 12 years and one for 22 years I was never told I was being contracted out and never signed anything to be contracted out.

I have to admit that when I was young and carefree (and a lovely thing I was too), I simply didn't give it a thought - I was in an occupational pension scheme but the finer details passed me by like the idle wind I regarded not.......:eek:

Gers

I paid into a LG final salary scheme and never knew the term 'contracted out' until near the end of my service and change of employer. That was in 2007. When I reached 60 years I took my pension under the terms of the 80 year rule.

It wasn't until (probably) the late '90s / early '00s' that I started to received annual pension statements outlining details of my pension.

GibbsRule_No3

I knew I was in a Pension scheme that would pay me monthly until I died and it was the reason I did not take home as much as an outside firm would pay but "contracted out" never meant anything. Probably did not hear it mentioned until it stopped being contracted out. So not everyone knew what it meant, congratulations if you were that on the ball ALL your working life. I have learnt more about pensions since coming on here than when I started work in 1970. The only thing I knew then was that my SP age was 60 and my paid into pension was 60, I probably never gave a thought to the fact I could have taken that earlier. Martin Lewis is right, schools should teach these things now, as they are probably going to change far more often and quicker, than the last 10+ years have.

mgdavid

GibbsRule_No3 wrote: »

I knew I was in a Pension scheme that would pay me monthly until I died and it was the reason I did not take home as much as an outside firm would pay but "contracted out" never meant anything. Probably did not hear it mentioned until it stopped being contracted out. So not everyone knew what it meant, congratulations if you were that on the ball ALL your working life. I have learnt more about pensions since coming on here than when I started work in 1970. The only thing I knew then was that my SP age was 60 and my paid into pension was 60, I probably never gave a thought to the fact I could have taken that earlier. Martin Lewis is right, schools should teach these things now, as they are probably going to change far more often and quicker, than the last 10+ years have.

And who do you propose will teach all the people who have left school already, and will continue to leave school after subsequent changes happen?
Do you not see any role for either parents or the individuals concerned?

Do I sense you think people should be spoonfed by the state for evermore?

Happychappy

Hi

Is there any formula as to how many years being contracted out, will it take to get the full state pension ?

Is it that simple ? as I know it takes 35 years of contributions, however, I have so far worked for 47 years and made full years contributions, albeit many years contracted out by my employers, yet I still have three full years to go, in other words, working and contributing for 50 years, before I can reach a state pension of maximum £163, which is just under the full state pension.

Be grateful for any views ?

xylophone

Is there any formula as to how many years being contracted out, will it take to get the full state pension ?

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/447195/new-state-pension--effect-of-being-contracted-out.pdf

But for BSP read £119.30 and NSP £155.65.

At 6/4/16 two calculations were done

Old Rules

NI years/30 x £119.30 + (Additional State Pension - deduction for contracting out)

New Rules

NI years/35 x £155.65 - Rebate Derived Amount (Contracted Out Pension Equivalent).

Your starting amount was the higher of the two.

https://www.gov.uk/new-state-pension/how-its-calculated

https://www.royallondon.com/siteassets/site-docs/media-centre/good-with-your-money-guides/topping-up-your-state-pension-guide.pdf

p00hsticks

Happychappy wrote: »

Hi

Is there any formula as to how many years being contracted out, will it take to get the full state pension ?

Is it that simple ? as I know it takes 35 years of contributions, however, I have so far worked for 47 years and made full years contributions, albeit many years contracted out by my employers, yet I still have three full years to go, in other words, working and contributing for 50 years, before I can reach a state pension of maximum £163, which is just under the full state pension.

Be grateful for any views ?

Basically anyone who, when the new state pension was introduced on 6/4/16, had

a) a high COPE amount due to contracting out
b) at least 30 NI years
and
c) no 'additonal' (SERPS / S2P) pension due to be contracted in

would have had a 'starting amount' of simply the old basic state pension amount, which was around £121 at the time.

Each post-2016 NI year would then add 1/35th of the new state pension amount until the maximum (around £163 at the time) is reached - I can't remember the exact numbers, but I think it works out at an extra 8 (I think) years.

So the maximum years would be 8 + however many pre-2016 years they already had.

People generally start paying NI at 15 or 16 and stop once they reach state pension age (with the year in which they reach this age not counting towards pension calculations) so 50 is about the maximum possible.

GibbsRule_No3

mgdavid wrote: »

And who do you propose will teach all the people who have left school already, and will continue to leave school after subsequent changes happen?
Do you not see any role for either parents or the individuals concerned?

Do I sense you think people should be spoonfed by the state for evermore?

Guessing that if they have the initial discussion at school they will then have a choice to be aware of the changes and what to look out for during their working life. Certainly 47 + years ago when I was at school and then started working, nothing about pensions was taught or talked about.

mgdavid

GibbsRule_No3 wrote: »

Guessing that if they have the initial discussion at school they will then have a choice to be aware of the changes and what to look out for during their working life. Certainly 47 + years ago when I was at school and then started working, nothing about pensions was taught or talked about.

I rhather think it unwise to have education / syllabus content changed on a guess!
Did you miss questions 2 and 3? They need to be taken together rather than in isolation