Employer (Ford Motor Company) Didn't Pay National Insurance - State Pension Diminished

RedditchResident

xylophone said:

You might have been opted out of the state pension scheme. 

"Contracted Out" of SERPS - but even for those contracted out, NI payments still needed to be made by both employer and employee, just at a different rate.

I wasn't contracted out.  All subsequent years are ok.

RedditchResident

El_Torro said:

It's possible that your employer (Ford) didn't actually do anything wrong. You might have been opted out of the state pension scheme. Essentially your employer gave you a more generous pension in return for you getting a reduced state pension.

This may or may not be the case for you. However I'd be surprised if Ford has swindled you in this case. 

I wasn't opted out.  There may not have been any intention to swindle but an honest mistake would be easier to accept if there was some recognition of that fact and an offer to put it right.

nick74

Are you saying that you crossed the NI threshold in one month only of 1990, and for the rest of the tax year your wages were under the threshold? If so then it's quite possible that that tax year would not have counted towards your state pension anyway, regardless of whether Ford had paid the one month's contribution or not.

molerat

RedditchResident said:

All of my years with Ford are qualifying years except the year in question.  

Confused by this.  If it is only one year then that is hardly likely to diminish your state pension.

Again, what exactly does your pension forecast show ?

Does it mention contracting out and does it show a COPE amount ?

Were you a member of the Ford pension scheme ?

RedditchResident

nick74 said:

Are you saying that you crossed the NI threshold in one month only of 1990, and for the rest of the tax year your wages were under the threshold? If so then it's quite possible that that tax year would not have counted towards your state pension anyway, regardless of whether Ford had paid the one month's contribution or not.

I have been asked by others whether I earned enough that year to make the NIC threshold.  I am saying I crossed that threshold in month one.

RedditchResident

molerat said:

RedditchResident said:

All of my years with Ford are qualifying years except the year in question.  

Confused by this.  If it is only one year then that is hardly likely to diminish your state pension.

Again, what exactly does your pension forecast show ?

Does it mention contracting out and does it show a COPE amount ?

Were you a member of the Ford pension scheme ?

You need 35 qualifying years to make the full state pension, every year counts.  If you miss one your pension is reduced.  I had other periods when I didn't make enough NI contributions, notably when I started my own business.  Yes, I was a member of Ford's occupational pension and that is all safe and sound.  I am waiting until the last moment before claiming my occupational pension.  To be clear, I was not contracted out.

RedditchResident

Marcon said:

RedditchResident said:

I am approaching retirement age and checked my state pension.  I learned that in 1990 my then employer Ford Motor Company, ... 

Could be an error on NICO's part. What exactly does your state pension forecast show, especially in relation to the whole period of service with Ford?

It shows that all years with Ford either side of 1990 are qualifying years.  It says that in 1990 I made no contributions so that is not a qualifying year.

RedditchResident

Terron said:

Whilst there is a time limit on breach of contract I don't think there is for HMRC collecting NI. I don't know if that would help your pension but it might be worth investigating.

As far as I know HMRC intend to contact Ford about this.

molerat

RedditchResident said:

molerat said:

RedditchResident said:

All of my years with Ford are qualifying years except the year in question.  

Confused by this.  If it is only one year then that is hardly likely to diminish your state pension.

Again, what exactly does your pension forecast show ?

Does it mention contracting out and does it show a COPE amount ?

Were you a member of the Ford pension scheme ?

You need 35 qualifying years to make the full state pension, every year counts.  If you miss one your pension is reduced.  I had other periods when I didn't make enough NI contributions, notably when I started my own business.  Yes, I was a member of Ford's occupational pension and that is all safe and sound.  I am waiting until the last moment before claiming my occupational pension.  To be clear, I was not contracted out.

35 years is only for those starting their NI history after 2016.  Everyone with a pre 2016 history is on a hybrid scheme where you may need more or less than 35 years to get more or less than the current full pension. I have 42 years and do not receive the full pension.

Again, what does your pension forecast show ?  Are you sure the Ford pension scheme was not contracted out ?

nick74

My money would be on the Contributions Agency (as I think they were called at that time) losing the record rather than Ford not paying it. Do you still have any wage slips or P60 for that year? Incidentally you don't neccessarily need 35 years NI contributions to get a full state pension as you will come under the transitional rules. For you it may be more or less than 35 years.