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Contracted out - Never Knew!!

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Comments

  • SINDYGIRL
    SINDYGIRL Posts: 98 Forumite
    Part of the Furniture 10 Posts Name Dropper Combo Breaker
    Who knows...they say they have to liase with hmrc...I don't understand as dwp say my NI records are correct
  • SINDYGIRL
    SINDYGIRL Posts: 98 Forumite
    Part of the Furniture 10 Posts Name Dropper Combo Breaker
    edited 10 May 2023 at 5:48PM
    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
    xylophone Posts: 45,746 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 10 May 2023 at 5:43PM
    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
    SINDYGIRL Posts: 98 Forumite
    Part of the Furniture 10 Posts Name Dropper Combo Breaker
    Thankyou so much...I find this so complicated!
  • SINDYGIRL
    SINDYGIRL Posts: 98 Forumite
    Part of the Furniture 10 Posts Name Dropper Combo Breaker
    May I ask...Where did those figures come from?...
    £119.30 ... £155.65
  • molerat
    molerat Posts: 35,020 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    £119.30 was the old basic full pension and £155.65 the new full pension at April 2016.
  • SINDYGIRL
    SINDYGIRL Posts: 98 Forumite
    Part of the Furniture 10 Posts Name Dropper Combo Breaker
    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...
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