State pension and qualifying years

Band7

Aristotle67 said:

Band7 said:

I trust you have checked that you are not be eligible for NI credits?

I could be eligible for NI credits but I would be being dishonest and milking the system; I am not going to do either of those.

It's neither dishonest nor milking the system if a person claims the NI credits they are legally entitled to.

Aristotle67

Thanks for your thoughts, Band7, but I am not going to request NI credits.

When I gave up my career to concentrate on full-time punting there was a delay of a few weeks between these. During that time I did sign on and received JSA. When I was ready to commence full-time punting I signed off and explained what I would be doing from now on. The Job Centre did say I could still get my stamp paid without the need to go through the process of proving I was actively seeking work, so in that sense you might be right about a legal entitlement. However, I declined on the basis that I knew full well I was not seeking work from that point onwards and felt that in the circumstances it would be wrong to get my stamp paid. I considered myself fortunate in that income from my punting would not be taxable, and that was good enough. I felt I ought to pay NI voluntarily.

I should perhaps add that my previous career was as an academic lawyer and I had a particular interest in criminal law; what I consider to be honest, just and fair is often different from what others think. For me, in those circumstances, it would not be correct for me to have claimed NI credits even if, on a literal interpretation of the guidelines, I might be entitled to them; and my view has not changed in the last 20 years. Sorry if that sounds a bit sanctimonious, it is not my intention to come across as such, it is just my personal opinion.

molerat

I get where you are coming from.  When MrsM claimed her "granny credits" she claimed between 39 and 41 weeks each year as she only looked after the grandkids during the school term and paid class 3 for the remainder.  There are many who claim the full 52 weeks each year with no thought that they didn't actually provide care for 52 weeks.

GB12

Anyone able to tell me why I am getting an extra £12.72 extra on my pension. Its called a protected payment. Nothing to do with with inherenting a late spouses pension as i haven't got one. The other option is 
"Your National Insurance record before the 6th April 2016 was used to calculate your starting amount in the new scheme " 
That's not actually telling me why. 
Anyone able to explain it in a clear and concise way?

Linton

In 2016 when the new SP was brought in a comparison was made of your accrued entitlement under the new and old rules and the higher value chosen as the starting point for all transactions from then on.

In your case it turned out that your starting point thanks to the old rules was higher than the maximum you could get under the new rules probably because you were contracted into SERPs for a significant period.  But you were allowed to keep it.  This extra bit is the "protected payment". 

Having the protected payment means that you SP has not benefited from any NI you have paid since April 2016  - you cannot increase new SP beyond the standard level.

xylophone

At 6/4/16, two calculations were done to establish  your starting amount for new state pension.

Old Rules

NI years/30 (max) x £119.30 (Full Basic) + (Additional State Pension - (if applicable) Deduction for Contracting Out).

New Rules

{NI years/35 (max) x £155.65 (Full NSP)} - (if applicable) Contracted Out Pension Equivalent.

Your starting amount was the higher of the two.

In your particular case, the  SA was more than a full NSP - the amount by which it was higher became your "protected payment".

The amount representing the full NSP has been  increased since then under the "triple (current year double) lock while the protected payment has been increased by CPI.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/181237/single-tier-pension-fact-sheet.pdf 

GB12

Linton " probably because you were contracted into SERPs for a significant period" definitely not contracted into serps. 
Xylophone I might have had as much as 44 years contributions by 2016. Very little breaks 

Linton

GB12 said:

Linton " probably because you were contracted into SERPs for a significant period" definitely not contracted into serps. 
Xylophone I might have had as much as 44 years contributions by 2016. Very little breaks 

I am surprised - contracted-in was the default unless you were in a DB pension scheme or possibly some other types of employer scheme.  Were you in a DB pension scheme all your working life?

What is your total weekly SP?  Is it the protected payment + £185.15?

GB12

Linton said:

GB12 said:

Linton " probably because you were contracted into SERPs for a significant period" definitely not contracted into serps. 
Xylophone I might have had as much as 44 years contributions by 2016. Very little breaks 

I am surprised - contracted-in was the default unless you were in a DB pension scheme or possibly some other types of employer scheme.  Were you in a DB pension scheme all your working life?

What is your total weekly SP?  Is it the protected payment + £185.15?

Yes to 185.15
Did have a company pension 9 years worth paid out in cash and put into a SIPP 5 years ago.  
Maybe it is a c*ck up by pensions.
Is serps the state pension. I thought it was something else?
Aked for a letter of explanation and confirmation. 

xylophone

Xylophone I might have had as much as 44 years contributions by 2016.

30/35 maxima used in the calculations - see above.

You have just reached age 66?

Did you obtain a state pension forecast before you reached SPA?

If so, what was the COPE shown?

Are you saying that you were contracted out of SERPS/S2P between 1978 and 2016 (or 2012 if not a DB Scheme)?

Even if so, you  might have had a tiny amount of Graduated Pension and possibly some S2P depending on salary between 2002 and 2016.