Not getting full amount of New State Pension

jem16

covid1956 said:

nigelbb said:

Linton said:

It is likely that you were contracted out of SERPs, probably as a member of a DB pension scheme.  Have you got a pension forecast from https://www.gov.uk/check-state-pension ?  If you let us know what it says including anything about "COPE" we should be able to explain more.

Many people believe that if they have 35 years NI they are entitled to a full state pension.  The 35 years only applies if you have spent your entire working life under the post 2016 state pension rules.  Obviously no-one is going to be in that position for another 30 years. Until then SP may be lower or higher than the current standard amount.

Joe Crystal is correct - in the 1970's people were given NI credits from the age of 16-18 whilst in full time education, I think to provide some encouragement to stay at school.

Not just in the 1970s & not just for those in full time education. Right up until 2010 everyone was credited with NI contributions for the tax year in which they reached the age 16 and for the following two tax years. The policy intention of these “Starting Credits” was to ensure that those staying on in education beyond the minimum school leaving age did not lose future benefit entitlement as a result.

mmmm
ok so i might be swayed to pay out £300 but i do have a few questions to ask the DWP
1 As i have reached pension age is it too late to buy an extra year
2 How much will my pension increase if i buy an additional year
3 I left school at 16 but at 20 i went into full time education for 3 years does this qualify for Starting Credits (probably no is the answer)
Giving this a serious rethink thanks to your comments
thanks lads/lasses
covid

1. Yes you can still buy years after reaching SPA. See here;

https://www.gov.uk/voluntary-national-insurance-contributions/who-can-pay-voluntary-contributions

2. Answered already.

3. Only 16 to 18 counted for the Starting Credits.

nigelbb

covid1956 said:

nigelbb said:

Linton said:

It is likely that you were contracted out of SERPs, probably as a member of a DB pension scheme.  Have you got a pension forecast from https://www.gov.uk/check-state-pension ?  If you let us know what it says including anything about "COPE" we should be able to explain more.

Many people believe that if they have 35 years NI they are entitled to a full state pension.  The 35 years only applies if you have spent your entire working life under the post 2016 state pension rules.  Obviously no-one is going to be in that position for another 30 years. Until then SP may be lower or higher than the current standard amount.

Joe Crystal is correct - in the 1970's people were given NI credits from the age of 16-18 whilst in full time education, I think to provide some encouragement to stay at school.

Not just in the 1970s & not just for those in full time education. Right up until 2010 everyone was credited with NI contributions for the tax year in which they reached the age 16 and for the following two tax years. The policy intention of these “Starting Credits” was to ensure that those staying on in education beyond the minimum school leaving age did not lose future benefit entitlement as a result.

mmmm
ok so i might be swayed to pay out £300 but i do have a few questions to ask the DWP
1 As i have reached pension age is it too late to buy an extra year
2 How much will my pension increase if i buy an additional year
3 I left school at 16 but at 20 i went into full time education for 3 years does this qualify for Starting Credits (probably no is the answer)
Giving this a serious rethink thanks to your comments
thanks lads/lasses
covid

The "Starting Credits" were not just for those in full time education they were given to everyone as well... the clue is in the name. You even quoted my explanation "everyone was credited with NI contributions for the tax year in which they reached the age 16 and for the following two tax years".

Linton

covid1956 said:

nigelbb said:

Linton said:

It is likely that you were contracted out of SERPs, probably as a member of a DB pension scheme.  Have you got a pension forecast from https://www.gov.uk/check-state-pension ?  If you let us know what it says including anything about "COPE" we should be able to explain more.

Many people believe that if they have 35 years NI they are entitled to a full state pension.  The 35 years only applies if you have spent your entire working life under the post 2016 state pension rules.  Obviously no-one is going to be in that position for another 30 years. Until then SP may be lower or higher than the current standard amount.

Joe Crystal is correct - in the 1970's people were given NI credits from the age of 16-18 whilst in full time education, I think to provide some encouragement to stay at school.

Not just in the 1970s & not just for those in full time education. Right up until 2010 everyone was credited with NI contributions for the tax year in which they reached the age 16 and for the following two tax years. The policy intention of these “Starting Credits” was to ensure that those staying on in education beyond the minimum school leaving age did not lose future benefit entitlement as a result.

mmmm
ok so i might be swayed to pay out £300 but i do have a few questions to ask the DWP
1 As i have reached pension age is it too late to buy an extra year
2 How much will my pension increase if i buy an additional year
3 I left school at 16 but at 20 i went into full time education for 3 years does this qualify for Starting Credits (probably no is the answer)
Giving this a serious rethink thanks to your comments
thanks lads/lasses
covid

1) You can pay voluntary  NI  for pre-SP age years after you have reached SP age  but only for the previous 6 tax years (so currently from 2016/2017). You can possibly go back to 2006 under special arrangements made when the new pension scheme was set up in 2016.  This option will not be available after the end of this tax year. 

2) An extra NI year will normally get you 1/35th of the standard rate.  But it cannot take you above the standard rate.  So if you were already 50p below the maximum you could pay for an NI year but it would not be worthwhile.

nigelbb

Linton said:

covid1956 said:

nigelbb said:

Linton said:

It is likely that you were contracted out of SERPs, probably as a member of a DB pension scheme.  Have you got a pension forecast from https://www.gov.uk/check-state-pension ?  If you let us know what it says including anything about "COPE" we should be able to explain more.

Many people believe that if they have 35 years NI they are entitled to a full state pension.  The 35 years only applies if you have spent your entire working life under the post 2016 state pension rules.  Obviously no-one is going to be in that position for another 30 years. Until then SP may be lower or higher than the current standard amount.

Joe Crystal is correct - in the 1970's people were given NI credits from the age of 16-18 whilst in full time education, I think to provide some encouragement to stay at school.

Not just in the 1970s & not just for those in full time education. Right up until 2010 everyone was credited with NI contributions for the tax year in which they reached the age 16 and for the following two tax years. The policy intention of these “Starting Credits” was to ensure that those staying on in education beyond the minimum school leaving age did not lose future benefit entitlement as a result.

mmmm
ok so i might be swayed to pay out £300 but i do have a few questions to ask the DWP
1 As i have reached pension age is it too late to buy an extra year
2 How much will my pension increase if i buy an additional year
3 I left school at 16 but at 20 i went into full time education for 3 years does this qualify for Starting Credits (probably no is the answer)
Giving this a serious rethink thanks to your comments
thanks lads/lasses
covid

1) You can pay voluntary  NI  for pre-SP age years after you have reached SP age  but only for the previous 6 tax years (so currently from 2016/2017). You can possibly go back to 2006 under special arrangements made when the new pension scheme was set up in 2016.  This option will not be available after the end of this tax year. 

2) An extra NI year will normally get you 1/35th of the standard rate.  But it cannot take you above the standard rate.  So if you were already 50p below the maximum you could pay for an NI year but it would not be worthwhile.

  An extra 50p/week pension is still worthwhile if you are eligible to pay Class 2 NI contributions as these only cost about £160 for each added year.

t0rt0ise

Just to add that if you buy NI years after receiving state pension, the pension will be increased from the date you paid. It will not be backdated.

JJC1956

covid1956 said:

Well i became eligible for the New State Pension in January and as i have 44 full qualifying years i thought i would get the full state pension but no i am about £5.00 a week short of the full state pension. 
So i was wondering why?
I have filled in the on line form querying this well over a month ago--- but no reply
I have also written to DWP at their Wolverhampton office and am waiting for their reply.
I have printed off the info from the website stating i have 44 years of NI contributions and sent it to them with my letter.
To be honest i think i have only 43 full qualifying years as their website states "Our records show you have 4 full years up to 5 April 1975"
So i finished school in June 1972 so how could i be paying NI contributions for the tax year 1971 - 72!!! 72-73 yes 73-74 yes 74- 75 yes.
anyone else having this type of problem
thanks
COVID

I’m in exactly the same boat, I spoke to the DWP at Wolverhampton 2 days ago, she told me that I should receive a reply within 28 days if not to ring back, she told me it might have something to do with me working for BT for 7 years in the 80’s, she also mentioned a lot of other major companies and organisations opted their staff out without telling them, and they are dealing with all of these queries all day long. Not sure of all the technical data but I will def be keeping an eye on this thread.

Linton

t0rt0ise said:

Just to add that if you buy NI years after receiving state pension, the pension will be increased from the date you paid. It will not be backdated.

Is this true?  I thought that if you paid backdated NI after receiving your SP you would then get backdated payments. but cant find any evidence.

covid1956

UPDATE
Phoned future pensions office, they informed me that i pay my £301 to HMRC however "there is no guarantee that this will increase my pension by to the full amount" so she filled in a form and sent it to HMRC, who will write to me within 14days to tell me if my additional payment is financially worthwhile.
14 days !! HMRC !!! Lets see if they meet that deadline.
Covid

jem16

JJC1956 said:

covid1956 said:

Well i became eligible for the New State Pension in January and as i have 44 full qualifying years i thought i would get the full state pension but no i am about £5.00 a week short of the full state pension. 
So i was wondering why?
I have filled in the on line form querying this well over a month ago--- but no reply
I have also written to DWP at their Wolverhampton office and am waiting for their reply.
I have printed off the info from the website stating i have 44 years of NI contributions and sent it to them with my letter.
To be honest i think i have only 43 full qualifying years as their website states "Our records show you have 4 full years up to 5 April 1975"
So i finished school in June 1972 so how could i be paying NI contributions for the tax year 1971 - 72!!! 72-73 yes 73-74 yes 74- 75 yes.
anyone else having this type of problem
thanks
COVID

I’m in exactly the same boat, I spoke to the DWP at Wolverhampton 2 days ago, she told me that I should receive a reply within 28 days if not to ring back, she told me it might have something to do with me working for BT for 7 years in the 80’s, she also mentioned a lot of other major companies and organisations opted their staff out without telling them, and they are dealing with all of these queries all day long. Not sure of all the technical data but I will def be keeping an eye on this thread.

Companies and organisations often had Defined Benefit schemes and the scheme itself was contracted out. If you joined the scheme then you were contracted out. As to being told all contracted out pension schemes had to inform their members of how it would affect them. It was in all the scheme booklets. Many people simply took no notice and didn’t read the booklet. 

JJC1956

covid1956 said:

UPDATE
Phoned future pensions office, they informed me that i pay my £301 to HMRC however "there is no guarantee that this will increase my pension by to the full amount" so she filled in a form and sent it to HMRC, who will write to me within 14days to tell me if my additional payment is financially worthwhile.
14 days !! HMRC !!! Lets see if they meet that deadline.
Covid

I Was told 28 days, I won’t hold my breath, I have been waiting for a SAR from HMRC about my NI since last July, and yes I have tried contacting them, at least 3 times since.