NI Contributions for State Pension

GunJack

scubajoe said:

Dazed_and_C0nfused said:

Maybe @DiggerUK is another poster who thinks 35 years is important for existing pre April 2016 contributors?

Why isn't 35 years important for pre April 2016 contributors?

because when the new SP came in in 2016, existing NI years were used to calculate the starting amount of new SP, which could leave you needing more (or less) than 35 years total to get up to the max newSP.
Essentially, because if you have pre- and post-2016 NI years, you're on a hybrid of old & new SP. 35 years is if you start your NI contributions from April 2016, i.e. you ONLY contribute under the new system.

Happychappy

Hi, 
Thanks for the responses, the reason I posted, is the assistant on the .Gov helpline insisted that I cannot back date the final year or my final credit, as according to this person, on the date of my 66th birthday in July 2021, that is the date my "Pension Account" will be closed, and it is that date and the amount of contributions made by that date, that the amount of pension will be decided, and as they do not administer the 2020/2021 year until October, this would not be added.

Clearly this is wrong, as if I was still working and paying NI, this would surely be taken into account, so I was hoping someone may have had experience of this, as the logic of this person is anyone born between 5th April and the date in October when DWP updates the NI contributions would lose a year, which is clearly wrong, anyway, I have also sent a letter asking for clarity from the Pensions Minister Theresa Coffey, and hope to receive clarity.

Just to show what the .Gov website shows on my forecast. I still find it a little strange that I have worked full time for 49 years and paid NI every single week, never having ever had a week unemployed, yet still I do not qualify for full state pension, I accept the contracted out part of it, but surely 49 years of contributions should have made up the required 35 qualifying years?

You have:  49 years of full contributions

1 year to contribute before 5 April 2021. You do not have any gaps in your record.

You need to continue to contribute National Insurance to reach your forecast

Estimate based on your National Insurance record up to 5 April 2020 is £169.27 a week

Forecast if you contribute until 5 April 2021 £174.28 a week

t0rt0ise

I know that if you pay NI for the year, the increase in pension only takes effect from the date you paid which is why I wanted to pay before my pension starts. But you are talking about credits which is different and you would think that that makes a difference. But if the people who work there don't know then god help us all.

molerat

Only a maximum of 35 of those pre 2016 years could count for the new calculation and only 30 for the old calculation so it wouldn't matter if you had 149.

jimboy500

Just send the form with an explanation and see what happens

jimboy500

"Once you have established that credits may be transferred, your partner may apply for credits to be transferred to them using form CF411A. There are strict time limits so, for example, if you wish to apply for credits for any weeks falling between 6 April 2016 and 5 April 2017, your application must be received before 5 April 2018."

https://www.litrg.org.uk/latest-news/news/170615-you-may-get-national-insurance-credits-if-you-claim-child-benefit-–-it

This is a news story and may not be up to date

Silvertabby

Happychappy said:

Hi, 
Thanks for the responses, the reason I posted, is the assistant on the .Gov helpline insisted that I cannot back date the final year or my final credit, as according to this person, on the date of my 66th birthday in July 2021, that is the date my "Pension Account" will be closed, and it is that date and the amount of contributions made by that date, that the amount of pension will be decided, and as they do not administer the 2020/2021 year until October, this would not be added.

Clearly this is wrong, as if I was still working and paying NI, this would surely be taken into account, so I was hoping someone may have had experience of this, as the logic of this person is anyone born between 5th April and the date in October when DWP updates the NI contributions would lose a year, which is clearly wrong, anyway, I have also sent a letter asking for clarity from the Pensions Minister Theresa Coffey, and hope to receive clarity.

Just to show what the .Gov website shows on my forecast. I still find it a little strange that I have worked full time for 49 years and paid NI every single week, never having ever had a week unemployed, yet still I do not qualify for full state pension, I accept the contracted out part of it, but surely 49 years of contributions should have made up the required 35 qualifying years?

You have:  49 years of full contributions

1 year to contribute before 5 April 2021. You do not have any gaps in your record.

You need to continue to contribute National Insurance to reach your forecast

Estimate based on your National Insurance record up to 5 April 2020 is £169.27 a week

Forecast if you contribute until 5 April 2021 £174.28 a week

Mr S's birthday is in May.  He retired at 60, but received 'free' NI contributions for 2016/17 and 2017/18 because his pension credit age was 63 and some months.

When he applied for his State pension the credit for 2017/2018 hadn't been added - but the very helpful lady he spoke to said that wasn't a problem, and made the adjustment herself.

Of course, that may have been because it was a pension credit age thing, so he was entitled to it regardless.

Happychappy

jimboy500 said:

Just send the form with an explanation and see what happens

Thanks, and that was what I tried to do, however, the forms cannot be completed until the October following the end of a tax year, so I cannot claim until October 2021, and by then, my state pension will have kicked in at the reduced rate as their records would not show the final year? I was trying to plan the finances, but trying to talk to DWP is very difficult

jem16

Happychappy said:

jimboy500 said:

Just send the form with an explanation and see what happens

Thanks, and that was what I tried to do, however, the forms cannot be completed until the October following the end of a tax year, so I cannot claim until October 2021, and by then, my state pension will have kicked in at the reduced rate as their records would not show the final year? I was trying to plan the finances, but trying to talk to DWP is very difficult

Yes it does say on the form that you cannot claim until the October after the tax year ends. However just ignore that and send the form in around May/June with a covering letter as to why you're sending it early. I know someone who also had to do this and it was fine. You are entitled to it and it will be added to your state pension even if it isn't at the beginning. 

beduth

Happychappy said:

I originally posted this on the benefits section, but possibly may be better posting here ?

Hi

I am currently 65 years of age, and due to receive my State Pension next July 2021, I have 49 years of N/I contributions, but in order to receive the maximum pension I still require a further single contribution from the current tax year 6th April 2020 to 5th April 2021. In March 2020, I left my employment after 43 years, and drew upon a private pension in order to care for my 2 yr old grandson, so that my son and daughter-in-law could continue their careers, expecting to claim the National Insurance credit for the tax year 2020/2021 ending on 5th April 2021, by my daughter in law transferring the N/I credit via form CF411A, I would then receive the credit and full pension amount on my 66th birthday, 29th July 2021.

I started to complete form CF411A, and noted, applications cannot be made until October following the end of a tax year, therefore if I applied in October 2021 for the tax year ending April 2021 this would be after I started receive my state pension, and therefore this would recognise the credit? It appears that although a tax years ends on 5th April, the department responsible cannot calculate National Insurance contributions for a further 6 months ? I spoke with the various helplines and received conflicting advice and to claim in October 2021, which would be too late as I was intending to claim my pension from July 2021, however, if the only way was to wait until the final credit was added in October, I could then claim the pension from November with whatever increase this would make for the 12 weeks or so of not claiming it.?

Clearly this cannot be right, that I am claiming a credit for something I was eligible for during the tax year from April 2020 to April 2021, but as this would not be administered until half way through the following tax year, and after I reach state pension age in July 2021, I would not be eligible. Has anyone else come across this.

Had the exact same problem. Was told it would be adjusted when they received the form. Did as they said and they said they had lost the form. Did it again and noticed no difference. I have been credited with the years contribution but have no idea how to work out if the pension I receive is correct. 

When you get your pension you get no paperwork to see how it has been calculated. Just an amount paid into the bank every 4 weeks and that’s it. I phoned 2 or 3 times to try and clarify how it was calculated but eventually gave up.

Sorry I can’t be more help.