State Pension & Historical Contracted out Period

Marcon

hotlips46 said:

One thing that is not fair and could start off a big miss selling of defined benefit pension schemes. e.g. those who are/have retired after April 2016. You will have a reduction in your state pension because with a final salary (DB) pension as all local goverment and some private pensions you are contracted out of SERPS and you pay a reduced N. I. Now when you joined your scheme you were never told your state pension would be reduced because you are contracted out. This is so disappointing for all these pensioners who have retired or going to who are in a final salary scheme find out their state pension is been reduced. THIS IS MISS SELLING. Because you should have had the option to paying the full N. I. contribution. This is worth a petition.

All scheme booklets included the information that membership of a contracted out DB scheme meant you paid lower NI, so why would you expect to get the same state pension as those who paid full rate NI?

Since 1988 employees have had the right to opt out of membership of their employer's pension scheme, so if they thought living on a pittance (ie the state pension as it then was) rather than a private pension with a hefty employer contribution could make that daft choice if they wished.

hotlips46 said:

THIS IS MISS SELLING. Because you should have had the option to paying the full N. I. contribution. This is worth a petition.

No it isn't. Nobody was 'sold' anything. Suggest you try to understand the situation and recognise what a fantastic deal people in DB schemes have had, especially those in the public sector.

german_keeper

hotlips46 said:

One thing that is not fair and could start off a big miss selling of defined benefit pension schemes. e.g. those who are/have retired after April 2016. You will have a reduction in your state pension because with a final salary (DB) pension as all local goverment and some private pensions you are contracted out of SERPS and you pay a reduced N. I. Now when you joined your scheme you were never told your state pension would be reduced because you are contracted out. This is so disappointing for all these pensioners who have retired or going to who are in a final salary scheme find out their state pension is been reduced. THIS IS MISS SELLING. Because you should have had the option to paying the full N. I. contribution. This is worth a petition.

It's probably advisable to know and understand the facts before you start using words like mis-selling and petition. Molerat has touched on it but if you are genuinely interested just google the pre and post 2016 pension rules and hopefully you will then realise the error of your ways. 

Silvertabby

Those of us who reached SPA after 2016 with substantial contracted out service are the winners under the new pension scheme, not the losers.  Worst case scenario is that we got the pension we would have received under the old rules (ie, no reductions!) but many actually receive more.

It depends on the gap between 2016 and SPA - the longer the gap, the more time you have to add to what would have been your maximum pension under the old rules.

In my case, I have the maximum 38 years of contracted out service (1978 to 2016) but the  years between 2016 and SPA gave me enough time to top up my pension to the full nSP (by paying voluntary Class 3s, as I had retired at 60).  So, no, this contracted out post 2016 retiree won't be signing your petition.