OAP Pension . Satisfy my curiosity please .

alfmurph

I am 71 and well retired . Worked from 16 to 66 . At 27 joined lgps and worked their till i retired with a DB pension . I was contracted out for some years last century so my oap is the new pension but i receive less than the full oap by around 110 pounds every 4 weeks .
My question is - I have been told because of the contracted out situation my db pension is increased to make up for this. Is this true .

dunstonh

My question is - I have been told because of the contracted out situation my db pension is increased to make up for this. Is this true .

Yes.  You paid lower NI during your contracted out period, and the occupational pension makes up more or less of the difference.

Silvertabby

I want to say yes - both you and your employer paid reduced rate NI, in return for which the LGPS promised to pay you the equivalent of the State additional pension (SERPS/SP2) that you didn't pay for.

But is your State pension really only £110 every 4 weeks?  That is too low for even just the old basic State pension.  Despite your user name, are you by any chance a woman who opted to pay the married woman's 'little stamp'?  

comeandgo

Silvertabby said:

I want to say yes - both you and your employer paid reduced rate NI, in return for which the LGPS promised to pay you the equivalent of the State additional pension (SERPS/SP2) that you didn't pay for.

But is your State pension really only £110 every 4 weeks?  That is too low for even just the old basic State pension.  Despite your user name, are you by any chance a woman who opted to pay the married woman's 'little stamp'?  

I understood that he receives £110 less than the full state pension every 4 weeks.

Marcon

comeandgo said:

Silvertabby said:

I want to say yes - both you and your employer paid reduced rate NI, in return for which the LGPS promised to pay you the equivalent of the State additional pension (SERPS/SP2) that you didn't pay for.

But is your State pension really only £110 every 4 weeks?  That is too low for even just the old basic State pension.  Despite your user name, are you by any chance a woman who opted to pay the married woman's 'little stamp'?  

I understood that he receives £110 less than the full state pension every 4 weeks.

That's how I read it.

OP - please see https://www.gov.uk/contracted-out/how-contracting-out-affects-your-amount and if you've not done so, consider if you can increase your state pension by paying voluntary NI. The clock is ticking so the chances of your getting through on the phone are close to zero, but if you apply for a call back it will stop the clock (and probably save your sanity): https://secure.dwp.gov.uk/request-a-call-back-to-pay-voluntary-national-insurance-contributions/contact-form

Silvertabby

But the full nSP is £221.20 per week.  Less £110 = £111.20.  I would have expected OPs pension to be at least the old basic rate of £169.50.

Dazed_and_C0nfused

Silvertabby said:

But the full nSP is £221.20 per week.  Less £110 = £111.20.  I would have expected OPs pension to be at least the old basic rate of £169.50.

This is what the op said

but i receive less than the full oap by around 110 pounds every 4 weeks

Silvertabby

Ah - sorry, having a bit of a senior moment there!  

DRS1

So he would need another 4 or 5 years to make the pension up to £221.20 pw.  But does he actually have any years which are not full?  Surely not if he has worked for 50 years continuously up to SPA.

Dazed_and_C0nfused

DRS1 said:

So he would need another 4 or 5 years to make the pension up to £221.20 pw.  But does he actually have any years which are not full?  Surely not if he has worked for 50 years continuously up to SPA.

I think the op will be one of those who reached SPA so soon after the new State Pension was introduced that they simply didn't have the opportunity to build up enough post 2016 years to reach the standard new State Pension.

Marcon

Dazed_and_C0nfused said:

DRS1 said:

So he would need another 4 or 5 years to make the pension up to £221.20 pw.  But does he actually have any years which are not full?  Surely not if he has worked for 50 years continuously up to SPA.

I think the op will be one of those who reached SPA so soon after the new State Pension was introduced that they simply didn't have the opportunity to build up enough post 2016 years to reach the standard new State Pension.

Still worth checking on a 'just in case' basis. OP's comment 'I was contracted out for some years last century' made me wonder exactly what their employment history was, given that contracting out for DB schemes continued for another 16 years in this century!