Contracted out - Never Knew!!

SINDYGIRL

Yes it reads the same

SINDYGIRL

...dwp say someone at hmrc will have to do a 'physical' forecast taking 10 weeks...by that time I wont have long left to think about buying  back the years

GrubbyGirl_2

No excuse for you being given the incorrect information.  If you don't have Government Gateway access it's worth getting it so you can check for yourself. 

You will have been given details of your pension scheme but like the majority of public sector employees you will probably have just skim read it or read it and didn't understand.  However all public sector pensions are contracted out and you will have paid less National Insurance as a result so you will have benefitted at the time.  I worked in the public sector all my working life and retired at 60 with 45 full years of NI but I am still 4 years short, but because I was contracted out I have a very good pension.  I have actually bought back the 2 years since I retired and will buy back the remaining 2 when they become available to buy as it's a good investment, better than any savings account will give you.

Get yourself Government Gateway access is you don't have it the you can look at all the details yoursel

SINDYGIRL

I've got the Government Gateway access...my info on there is wrong as well...it states 44 full yrs... nothing contracted out...I've just spoken to dwp and lodged a complaint asking if it can be dealt with sooner to give me an accurate forecast...they said they will escalate a complaint but I'll still have to wait the 10weeks...I thought about ringing  hmrc but dwp say they need to wait on information from them...so annoying!

artyboy

If you have a paper and online forecast that is materially wrong, then that is genuinely concerning, and I don't recall any other reports of this happening on this board. I'd certainly want to understand why this happened - yes, the fact you were contracted out may have been in your employment contract, but this 'official' forecast exists for a reason, which is to give people a clear resource to plan for what they will receive and potentially take action on any shortfall.

Now, all that said, I suspect you're not going to get a resolution that pays you the full SP - we have had many reported situations where pension administrators have mis-stated entitlements, and the general expert view here is that you might get a few hundred quid in 'inconvenience' money but not a lot else. Ultimately this is not a situation where your funds have been mismanaged, just that you've been given bad information.

What I would be pushing for though is at least the opportunity to make up (ie pay for) extra years to allow you to get to the maximum SP as stated in your forecast.

pinnks

Have you looked at your NI record online too? Does it look correct to you, i.e. that the 44 years that is says are full look correct based on your memory of your working life?

As others have said, it seems likely that your starting amount at 6 April 2016 when the new state pension was is likely to be at least £156.20 (the max basic pension under the old rules).  Each full year on your NI record after that will add £5.82 to that amount.

Which years 2016/17 are showing as full - presumably 2016/17 and 2017/18, given that you retired in 2018?

That would take you to at least £156.20 + £5.82 + £5.82 = £167.84, which someone mentioned early on.  If you reach state pension age in 2024/25, which I think you mentioned, you can fill another 6 years up to and including 2023/24 (the tax year before you reach state pension age).  This would take you to £202.76.  This is similar to my position, except I retired in 2019/20 and can fill years up to 2023/24.

Those years can be filled through mandatory NI if you work, NI Credits if you are eligible or by paying voluntarily.  Payback on the investment if you pay voluntarily is about 3 years into claiming your pension.

Hopefully, you can get some sense out of DWP sooner rather than later.

MallyGirl

SINDYGIRL said:

I've got the Government Gateway access...my info on there is wrong as well...it states 44 full yrs... nothing contracted out...I've just spoken to dwp and lodged a complaint asking if it can be dealt with sooner to give me an accurate forecast...they said they will escalate a complaint but I'll still have to wait the 10weeks...I thought about ringing  hmrc but dwp say they need to wait on information from them...so annoying!

This is one of those occasions where you might get more joy by raising this with your MP. Sometimes they can get the priority raised in a way that you can't. If your record is genuinely setup wrong in the system and you reach pension age next year then 10 weeks is too long to ask you to wait for it to be looked at.

SINDYGIRL

Hopefully!...thanks to everyone for your help.
I'm over the 'contracted out' now and I get it...I must have been asleep!!
As for the dwp getting my forecast wrong ... on paper and on Gov.uk gateway access.. well that's another thing...I'm just glad I rang about something else yesterday or I'd have had a shock when I was really nearing state pension age which is May 2025.
Am I right in thinking that as I've not worked since I retired from teaching in July 2018 so have paid no contributions and will receive SP in May 2025 I could potentially enquire about buying  some or all of those years...is it 7 years worth or more? Is that going to cost thousands? Also if they possibly calculate £167.84 ish per week on new forecast would buying those years bring me up to full state pension amount and us it worth it? I apologise for my total ignorance on this whole subject.

pinnks

As you retired in July 2018, 2017/18 is likely to be partly full, and could be filled for less than the cost of the full year price of, currently £824.20.

You will then be able to fill 2018/19 to 2024/25, though paying 2024/25 will probably not be worth it as it will only add just over £1 per week.  2018/19, 2019/20 and 2022/23 current cost £824.20 per year.  2020/21 costs £795.60 and 2021/22 costs £800.80. 2023/24 costs £907.40.  Quite a lot of money but as long as your health (and your pocket!) is good, then payment is just under 3 years into receiving your pension.

If you have grandchildren and care for them, you may qualify for NI credits. 

SINDYGIRL

I do look after my grandchildren...I have 4 under 6, but only randomly when they're unwell, during school holidays and collecting from school or nursery so I'd imagine that doesn't count.