State Pension - Forecast is £187.25 pw but only 30 full years' NI contributions??

xylophone

the hybrid rules

Does GJ mean the transitional rules relating to NSP?

I too am somewhat surprised that with a fully contracted out career (up to 2016) he managed a full NSP after 30 years.

MikeFloutier

Those were the days!

Indeed, no weeping or gnashing here in Cornwall! ❤️

GunJack

xylophone said:

the hybrid rules

Does GJ mean the transitional rules relating to NSP?

I too am somewhat surprised that with a fully contracted out career (up to 2016) he managed a full NSP after 30 years.

Pedant alert!! Yes, I do mean the transitional rules. 

For you and @Audaxer - there was some weird ruling about Civil Service and low pay which led to some SERPS/S2P top-up on top of the CS pension (something to do with GMP and the CS pension was below the GMP threshold IIRC) which then figured in the 2016 starting point calculations (I remember asking about it on here at the time, but can't remember who explained it). So I think probably my 31st year got me there rather than 30th.

Silvertabby

GunJack said:

xylophone said:

the hybrid rules

Does GJ mean the transitional rules relating to NSP?

I too am somewhat surprised that with a fully contracted out career (up to 2016) he managed a full NSP after 30 years.

Pedant alert!! Yes, I do mean the transitional rules. 

For you and @Audaxer - there was some weird ruling about Civil Service and low pay which led to some SERPS/S2P top-up on top of the CS pension (something to do with GMP and the CS pension was below the GMP threshold IIRC) which then figured in the 2016 starting point calculations (I remember asking about it on here at the time, but can't remember who explained it). So I think probably my 31st year got me there rather than 30th.

That was the switch from SERPS to SP2 in 2002, and applied to all contracted out pensions, not just the CS.

SP2 was designed to benefit the lower paid (but also included those who were on low pay because they chose to work part time), in the form of a higher rate of  additional State pension.  Rather than fiddle with public sector DB calculations, it was decided that the difference between SERPS and SP2 would be added to the State pension. 

This then boosted the 2016 State pension foundation amount for those affected.

That said, it's not a huge amount, and I'm also - surprised - that GJ has exceeded the full single tier pension in 31 years despite being contracted out for all/most of his working life.

I was contracted out for the maximum 38 years (1978 to 2016) and needed 48 years of NI conts (44 from working, 4 from voluntary Class 3s) in order to rack up the full £185.15 per week.  

GunJack

Thanks @Silvertabby for that....I remember SERPS/S2P had something to do with it. I haven't exceeded the newSP, just got to it early enough to be very relaxed about not having to worry about getting any more NI for SP purposes - stroll on the next 12 years before I can get it