Can I buy Class 3 NICs for a year I was working?

N1ck_K

I am no longer working and have 47 years 'full' NI Contributions but am not eligible for a full pension because I was opted out of S2P by my employers.  I could buy this year's voluntary Class 3 NICs at £907.40 to get close to the full pension, but could I pay the 2020/2021 NIC of £795.60 instead (even though I was working)? 

pinnks

If a year is showing as not full on your NI record then you can pay Class 3 to fill it, but if it is showing as full, then it's full, so there is nothing to pay.

N1ck_K

Thanks - I think I understand it now.  Any years after 2016 would have been paid as full NICs, it's the years before, while I was opted out, that weren't full contributions.

pinnks

That is not correct.  If you pay sufficient NIC to "fill" a year then it is simply "full" - contracting out has nothing to do with it.  However, the fact that you were contracted out of the second tier of the old state pension (SERPS/S2P) meant that you would have received a basic pension plus your contracted out pension, rather than a basic pension plus SERPS/S2P.

This had to be taken into account when you were transitioned onto the new state pension rules in 2016.  Had the rules not changed, the most you could have received would have been the old basic state pension of, currently, £169.50 per week with 30+ NI years.  That therefore became your "starting amount" for the new rules, since when you have been able to improve it up to your current forecast.  You are a winner from the changes in 2016.

molerat

What is 20-21 showing when you click on it ?  If you were working why is it not full / part full - earning below £120 pw ?