Pension Contracted Out period

steve2000a

Hi,

I have just started to receive my state pension and it has been reduced due to the fact I was "contracted out". I ask for an explanation for this and got a letter saying how DW&P arrived at my pension rate. Even after speaking to them and having the phone put down on me, I am still in the dark about a certain part of their calculation. I worked for a company from 1978 to 1982 and I was in their pension scheme. During this period I was classed as being "contracted out", which I agree with. When I left the company, I left my money in the scheme and could not pay money into the scheme. From 1982 to 1985 I was classed as not being "contracted out and paid full national insurance contributions.

In 1985, the company I worked for with the pension fund went insolvent and the pension was transferred to the Pension Protection Scheme. I could not pay any money into the scheme. DP&W have informed me I was contracted out by this scheme from 1985 to 2022 with the pension protection fund. What I can't understand is how I can be classed as "contracted out" during this period when I could not pay into the scheme.

Has this happened to anybody else or any idea why they have done this?

Thanks

molerat

Contracting out stopped in 2016 so something does not sound correct, you have likely misunderstood.

Did you get a forecast before you retired ?  if so what was the COPE figure ?

How much are you currently receiving and does your NI record have any gaps after 2016 ?

There may be a possibility to increase what you are receiving.

xylophone

you have likely misunderstood.

This may be the case.

As far as I understand it, the OP  started working for a certain company in 1978 and joined  the contracted out pension scheme, He left  the scheme in 1982.

At the least he should have a GMP - he may have a preserved pension (under scheme rules) even if not on a statutory basis.

https://www.barnett-waddingham.co.uk/comment-insight/blog/revaluation-for-early-leavers/

The scheme went into PPF. 

I wonder if what was meant by DWP was that he had a deferred pension and it was held by PPF from 1985 and revalued up to SPA?

OP, are you in receipt  of a pension from PPF?

https://www.ppfmembers.org.uk/en/FAQs/FAQRetirement2

You mention being "contracted in" in your employment 1982-1985 - this was with another company?

What happened between 1985 and State Pension Age?

Were you employed/self employed?

What pension provision did you have?

Do you have a State Pension Forecast from before you drew your SP?

What exactly does it say?

p00hsticks

What were you actually doing between 1985 and 2022, after you presumably left the insolvent company  ? 

Were you working ?  And if so what sort of Pension scheme(s) were you in from that new employer ?

You won't have been building up any new NI contributions after 1985 just from having a preserved Pension in the PPF.