If I already have 43 years of full contributions why is my pension forecast less than the £175.20 pe

jukebox_2

If I already have 43 years of full contributions why is my pension forecast less than the £175.20 per week i.e. it is saying I can claim £164.30 which is £11 short? Thank you. Ps I took early retirement due to ill health in 2015

soulsaver

Were you 'contracted out' during your employment?
Is there a 'cope' figure on your forecast?

Dazed_and_C0nfused

Because you are under transitional rules, not the full blown new State Pension rules.

You were presumably in a company pension scheme at some point and will have a COPE figure on your forecast.  
Note this can be ignored, it does not reduce your £164.30

jukebox_2

Hi Soulsaver & Dazed and Confused thank you for your prompt replies yes I was with Sodexo for a number of years but as far as I am aware I paid my full pension/NI contributions?

GunJack

jukebox_2 said:

Hi Soulsaver & Dazed and Confused thank you for your prompt replies yes I was with Sodexo for a number of years but as far as I am aware I paid my full pension/NI contributions?

So you have no occupational pension from your time with them? Think you need to check with their pension scheme administrators...

Dazed_and_C0nfused

As GunJack says that would be quite unusual.

Why didn't you join the pension scheme?  It would have meant you paid less NIC upto April 2016) and highly likely to have meant you paid less tax  as well.

Silvertabby

When DWP refer to full' NI contributions, they mean 'full financial year' and not 'paid full unreduced rate of NI contributions'.

My own NI record says I have 45 years of 'full' NI contributions - but 38 of those years were contracted out (of SERPS/SP2), meaning I paid reduced rate NI.

OP - when do you teach State pension age?  You may be able to top up your State pension with some voluntary Class 3 contributions.

xylophone

yes I was with Sodexo for a number of years but as far as I am aware I paid my full pension/NI contributions?
I took early retirement due to ill health in 2015

You had 43 years at the date of retirement?

You were a member of the Sodexo Pension Fund (Scheme)?  This was a contracted out Defined Benefit Scheme?

Are you in receipt of an ill health pension from the scheme?

Is a COPE shown on your forecast?  How much is it?

Being a member of a DB scheme did not  exempt you from paying NI contributions.

It was simply that if you were "contracted out", you paid NI at the "contracted out" rate because what you were contracted out of was SERPS/S2P (Additional State Pension).

https://www.gov.uk/contracted-out

jukebox_2

Thank you All have now discussed this with the pensions people and I am happy in my mind what I need to do. Its all a bit of a mine field lol but with my Army pension and NHS pension coming in monthly I will not be poor cheers All

dunstonh

but with my Army pension and NHS pension coming in monthly I will not be poor

Both of those were contracted out as well resulting in lower NI contributions.

Silvertabby

jukebox_2 said:

Thank you All have now discussed this with the pensions people and I am happy in my mind what I need to do. Its all a bit of a mine field lol but with my Army pension and NHS pension coming in monthly I will not be poor cheers All

Don't rule out those voluntary Class 3s.  Even as a tax payer in retirement, you'll get your investment back after less than 4 years.