NI query about qualifying years

foxgloves

Hi,
I am hoping someone more knowledgeable than me will be able to explain an anomaly between my NI payment record & my state pension forecast. I've recently turned 60 so my state pension will be payable from April 2031. I'm not working, having taken VR during the 2nd wave of austerity cuts to hit our sector.
I filled in some NI gaps last year by paying voluntary contributions & my understanding from my state pension forecast is that I am 2 years short of the amount required for receiving full pension, which I believe is 35 years. This implies that I have paid only 33 years. However, having checked my NI payment record on my Government Gateway account, I can see that I have 36 years fully paid, starting in 1980. This record is correct. I was working for the majority of the time, with a few weeks here & there received as credits (mostly when I was between graduation & employment)  plus the years for which I paid voluntary NI contributions.
So in a nutshell, my overall pension forecast says I will be 2 years short of full state pension, but my NI payment record clearly shows 36 years fully paid.
I also have a public sector pension which was contracted out, so I am wondering whether the qualifying years anomaly is connected to this. 
Many thanks in advance if anyone who is more clued up on the mechanics of NI can offer an explanation.
F

MallyGirl

You do not necessarily need 35 years. That only applies to people who started their NI journey from 2016 onwards. You are under transitional rules.

Brie

I think it's likely to do with the contracting out but no doubt an expert will be along to clear up the mystery in a bit.  Meanwhile is there any way for you to make up the other 2 years?  Claiming Job seekers, Carer's allowance etc?

molerat

As above, 35 years is only applicable to those starting out from 2016.  Everyone with a pre 2016 history is on a hybrid scheme where, at April 2016, you were given the better of your entitlement under the old or new schemes.  With a reasonable amount of contracted out time your new pension starting amount would have been under the old scheme and you would have been limited to using only 30 of those pre 2016 years.  You can add to that starting amount with post 2016 years to make up to the new max amount.  Anecdotal evidence on here shows anything between 29 and 50 years needed to reach the max, the higher numbers for those contracted out for the maximum years.  Which years did you fill and when did you do it ?

If you want a breakdown of how you got where you are post up the following anonymous information from your forecast / NI record and someone will run you through it

Current weekly £££.pp amount accrued up to April 2023 or 2024, some have been updated so please specify.
Number of full NI years 15-16 and earlier
Number of full NI years 16-17 and later
Tax year you reach state retirement
Any COPE amount shown, in a click link in "You've been in a contracted-out pension scheme".
Years which show not full and prices

foxgloves

Thanks for your prompt replies.
@Brie & @MallyGirl - Yes, I had heard of 'transitional rules' though wasn't sure how they apply in practice. I could opt to make voluntary contributions for the missing couple of years. I am not eligible for any credits except for those which I have already had added many years ago. 
@molerat - Thank-you, I will have a look at the COPE amount which I must admit is a link/detail I have not noticed, then I will be able to supply all the information you requested. I do have all the other info. I had thought that as I will be retiring post-2016 that I would require 35 years of full contributions but as I look into things in more detail, I am finding it is more complicated than that.
I'm not fretting about it, but when I see an anomaly which I can't explain, I like to find out why!
Best wishes,
Foxgloves

foxgloves

Morning @molerat,
I've gathered together the info you requested yesterday to help with my NI query:
*Current weekly pension amount accrued up to 5th April 2023 = £210-57
*Number of full NI years 2015/16 & earlier  = 30
*Number of full NI years 2016/17 & later  = 6
*Tax year in which I reach retirement  = 2031/32 (birthday at end of April 2031)
*Years which are not full are as follows:
2012-13       £824-20
2013-14       £824-20
2014-15       £824.20
2015-16       £824.20
2022-23       £824-20
Other gaps are just a couple of part years way back in the 1980s when I was a student so are not relevant.

Re any COPE amount shown. I haven't been able to provide this figure. I was contracted out (I have a local authority pension) & I can follow links from my Pension Forecast to read plenty of info about contracting out, but there isn't any figure showing.
Many thanks for your help.
Foxgloves

FIREmenow

Interesting. I've just been to check and the link that used to go to your personal COPE from the forecast now just goes to this generic page: https://www.gov.uk/contracted-out

The third page of that guide says that you can see your COPE on the forecast, but you can't right now.

I've reported the page as inaccurate, hopefully they bring it back!  

This is what it used to look like when you clicked the "like most people, you were contacted out of part of the State pension":

foxgloves

@FIREmenow,
I'm glad it's not just me! Yes, that's exactly it, there is a link but it just connects to general info, nothing relating to one's own pension forecast. The page you posted as an example of how it used to look was certainly nowhere in sight this morning.
F

molerat

There should be a click link in the "You've been in a contracted-out pension scheme" section of the forecast. With a long contracted out history you will have a fair COPE amount.

At April 2016 you were given the higher of 30 * (119.30 / 30) + £2.19 S2P (which already had a contracted deduction in the calculation) = £121.49 or 30 * (£155.65 / 35) - COPE.  The actual COPE amount is only relevant for working this out.  The old scheme would be the higher - the sums don't work under the new rules.  This amount has been upgraded by the annual increase and the post 2016 years have added to it at £6.32 per year.  You are now £10.63 short of the full amount which is equivalent to 1.7 years so 2 full years needed, one year will take you to £216.89 and the second adding the final £4.31.  Only post 2016 years will add to the pension so do not attempt to buy those earlier years, they would only change the new scheme calculation so would still fall short of the old calculation.

FIREmenow

@molerat for the £2.19 S2P above, have you derived it from the other information available? Just interested to understand the calculation.

FIREmenow

I've just checked the browser history on my phone, does this link take you to your COPE @foxgloves
https://www.tax.service.gov.uk/check-your-state-pension/account/cope

You might need to log in and try it a second time if it asks you to sign in to the government gateway first. I got back to my COPE page on this link.

(Although you don't need it now thanks to @molerat but pasting the link here might be helpful to others in the future!)