Contracted out - Never Knew!!

SINDYGIRL

Who knows...they say they have to liase with hmrc...I don't understand as dwp say my NI records are correct

SINDYGIRL

I spoke to a guy at dwp today and he implied I may have to buy 5 years...I'll just have to wait..I don't understand why if I was only contracted out for 12 years whilst teaching but otherwise I have no gaps ... 44 full years.. then why am I set to lose quite an amount weekly in as much as possibly £35...?

xylophone

It would seem that at 6/4/16, you had around 41 qualifying years?

At that point, two calculations should have been done for you to establish your "starting amount" for new state pension.

It was the higher of

Old Rules

Full Basic State Pension ( because you had at least 30 QY) +  (Additional State Pension - Deduction for Contracting Out).

£119.30 + (Additional State Pension - Deduction for Contracting Out).

New Rules

Full NSP (because you had at least 35 QY) - Contracted Out Pension Equivalent.

£155.65 - COPE.

Your starting amount was less than a full NSP and you had a number of years to go  to the last full tax year  before you reached SPA.


If you were employed and earning the relevant amount from 6/4/16 - 5/4/18, those years were QY and would have improved your starting amount  by around £15.

The likelihood is that voluntary contributions for two years will bring you to full NSP.

SINDYGIRL

Thankyou so much...I find this so complicated!

SINDYGIRL

May I ask...Where did those figures come from?...
£119.30 ... £155.65

molerat

£119.30 was the old basic full pension and £155.65 the new full pension at April 2016.

SINDYGIRL

molerat said:

£119.30 was the old basic full pension and £155.65 the new full pension at April 2016.

Thankyouxylophone said:

It would seem that at 6/4/16, you had around 41 qualifying years?

At that point, two calculations should have been done for you to establish your "starting amount" for new state pension.

It was the higher of

Old Rules

Full Basic State Pension ( because you had at least 30 QY) +  (Additional State Pension - Deduction for Contracting Out).

£119.30 + (Additional State Pension - Deduction for Contracting Out).

New Rules

Full NSP (because you had at least 35 QY) - Contracted Out Pension Equivalent.

£155.65 - COPE.

Your starting amount was less than a full NSP and you had a number of years to go  to the last full tax year  before you reached SPA.


If you were employed and earning the relevant amount from 6/4/16 - 5/4/18, those years were QY and would have improved your starting amount  by around £15.

The likelihood is that voluntary contributions for two years will bring you to full NSP.

...so hopefully maybe only 2 yrs to pay not 5...