BTPS pension offset & NI contributions beyond 35yrs.

Macy04

Hi, I retired early from BT in 2015, I am now about to take my state pension. I had a letter from the BTPS re the State Pension Offset and how much my BT pension would be reduced when I take my State pension.
To say I was shocked was an understatement, I’ve read loads now about the SPO, of which I still don’t understand.
The question is once the deduction starts at state pension age, will this SPO increase by the year?

I called the BTPS and even they didn’t know and have to get back to me.
It’s driving me nuts so I just wondered if anyone knew if it does increase?

Thanks for any help.

xylophone

According to Google AI, the SPO increases by S148 orders up to the time the member reaches SPA, at which time it is applied to his BT pension.

The reduction is permanent but does not increase after SPA.

state pension age

The BT Pension Scheme (BTPS) State Pension Offset is a fixed reduction that is applied to your BTPS pension once you reach your State Pension Age (SPA); it does not increase or change after that point

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The offset figure is calculated using a fixed formula and is then subject to annual increases broadly in line with National Average Earnings until you reach your SPA. This means the amount of the reduction is higher by the time it is actually applied, but it remains a permanent, fixed amount after your SPA. 

Macy04

Thank you Xylophone, that’s put my mind at ease. Great prompt reply.