Buying National Insurance years

Robert_Fuller

Hello
 My query concerns paying Class 3 voluntary contributions to purchase additional national insurance years 

I have just reached the state retirement age and do not receive the full state pension because for most of my working life I was contracted out of SERPS. . 

Since I have already reached the State Retirement Age I cannot complete this online and I need to contact the Pension Service to ascertain the exact costs for purchasing the missing years and the additional pension that this will purchase and then contact HMRC to obtain the 18 digit reference number.

The reason why I have not applied before now relate to the general concerns that I have of paying money into a system and then hearing nothing. 

 Is anybody able to advise me as to whether following the payment I would receive a receipt for the payment made (likely to be in the region of £4000) 

How long does it take between making the payment and this resulting in the higher pension. I have heard that people are still waiting to receive their top up 30 weeks after payment. 

Finally when the pension is increased would this be back dated to the date that the additional payment was made.

Thank you in anticipation

John Brookes 

molerat

The pension will be backdated to the date payment is received.  But .... as you have already reached retirement the whole process can take up to a year before you see any cash as it is a manual process not too far removed from Gringott's Bank !

HMRC will not issue a code until you have dealt with The Pension Service, TPS will only reply to your enquiry in writing. You then contact HMRC for the code and pay. Once the payment is processed HMRC pass the details on to DWP who manually calculate your uprated pension.

You will not get a receipt for the payment - you could though get some form of "receipt" through internet banking or paying over the counter at your bank.

Robert_Fuller

Thanks molerat, this is what I expected given my previous dealings with HMRC and the DWP. It all sounds good in theory but in practice we are dealing with a broken system and paying money into a black hole

Dazed_and_C0nfused

Robert_Fuller said:

Thanks molerat, this is what I expected given my previous dealings with HMRC and the DWP. It all sounds good in theory but in practice we are dealing with a broken system and paying money into a black hole

Had you paid in advance of your State Pension age you would be much more likely to have a better/quicker outcome.  It's leaving it until you have started to get your State Pension that will cause the biggest delay.

You are also now missing out on some of the benefits as the increased pension won't be backdated to your State Pension age.

Rodders53

molerat said:

You will not get a receipt for the payment - you could though get some form of "receipt" through internet banking or paying over the counter at your bank.

Or even the HMRC online payment system (taking screenshots). 
IIRC when we tried to pay for my wife's NI years (and failed) that way, payment was via a 3rd party (similar to WorldPay??).

Eventually we just sent a faster payment to the HMRC Account they gave along with the 18 digit reference and that is documented in our Joint Bank Account records.  All went through OK and her pension is now in payment.  No 'black hole' as the HMRC sort code and account code was listed on this forum (and elsewhere) as 'correct'.  Ours was for 10 years worth:  double the sum you mention and at a time before they extended the ability to purchase some older years.

Note: Sort code and a/c nos were fine - just the account name differed slightly from that HMRC told us over the phone.