National Insurance 'Credit' Question

Yeoman_24

I am a retired police officer in receipt of an ill-health retirement police pension, and an injury award. I retired in February 2016 and was too ill to work. I am disabled and have been awarded DWP PIP at the lower level for day-to-day activities. I am currently 55 years old. 

In April 2023, I started part-time clerk work for, by the end of that year, 3 small parish councils. I earned less than £100 per week from each council, but the cumulative amount would be around £170 per week. So, cumulatively I am above the NI Lower Earnings Limit of £123 per week, however practically, I made no actual national insurance contributions as my work earnings were below the limit required to do so. 

My online NI record shows that for 2023 - 2024 I have a full National Insurance 'credit'  but no details are shown as to why (not helpful but perhaps because no actual payment was made?)

Including 2023 - 2024, my online NI record shows 32 full years. However, it is also showing 7 years of gaps from 2016/17 to 2022/23. The online record offers for me to pay for the 7 years of gaps in order to obtain a full state pension.

The maximum weekly pension is £221 and my maximum will be £179. Their 7 years of contributions offer and the difference it will make is as follows.

Gaps                    Cost of filling gaps     New weekly pension

2016 to 2017        £761                          £186

2020 to 2021        £796                          £192

2021 to 2022        £801                          £198

2017 to 2018        £824                          £204

2018 to 2019        £824                          £211

2019 to 2020        £824                          £217

2022 to 2023        £824                          £221

Thanks for sticking with this so far!

My  questions are as follows,

1.  If I have 32 full years of NI contributions on my record, why would I have to pay for 7 years of gaps rather than 3. if only 35 years of contributions are required for a full state pension?

2.  Is my 'credit' for 2023 / 2024 because of my cumulative weekly earnings across all three councils being above the LEL, despite each individual council paying below the weekly LEL of £123.00?

Any help is appreciated please. Thanks

Ayr_Rage

Forget the 35 year idea, that's only for people who started working after 2016.

That table is correct, you'll need to pay those years to get a full new state pension.

HillStreetBlues

Was some of your NI contributions you paid used to contribute to a workplace or private pension?

QrizB

HillStreetBlues said:

Was some of your NI contributions you paid used to contribute to a workplace or private pension?

OP was in the police, and has a police pension.

IIRC the police pension scheme was contracted out.

kaMelo

As @QrizB said, your police pension was a contracted out pension scheme. As a result you paid a lower rate of NI but built up no SERPS/S2P as the police scheme guaranteed to at least match this amount.

The 35 years are only relevant to those who have no NI history before 2016, everyone else are under transitional rules. Anecdotal evidence on the pensions board has seen the number of years required for a full state pension range between 28 and 50 years.

If you want  more  in depth answer as to why, post on the pensions board.

molerat

You need to be clear about those SP figures.  If the £179 is what you have at April 2024, an I suspect it is, then there is no real need to purchase back years as you need another 7 with 12 left to go until retirement.  What are you intending to do going forward - carry on part time working, receiving benefits, looking after grandchildren ?  All ways of filling your NI record.

As to the current part time working, who actually pays you ?  i assume the CCs are all within the same local council area so is the bigger council the actual paying body, how many pay packets do you get ?