Did DWP ask you to pay voluntary NIC

diversls

If you claimed your state pension after 2016, the DWP may have illegally asked you for voluntary NIC to increase your qualifying years.

The DWP limit contributions in the years prior to 2016 to 30 years. This is against the Pension Act 2014, which says that 35 or more qualifying years earned prior to 2016 result in a full pension post 2016.

If you earned more than 30 qualifying years prior to 2016, the DWP will not have allowed these.

In my case I had 37 qualifying years prior to 2016, but per the DWP, could only utilise 30 of those years and was asked to pay the balance of 5 years in the form of voluntary NIC to qualify for a full pension.

The universal 30 year cap imposed by the DWP has no basis in any legislation.

If you were only credited with 30 years prior to 2016 when in reality you had more qualifying years, let this forum know.

molerat

Absolute rubbish. You obviously have not understood the legislation and the interaction of additional pension and contracted out deductions. There is no 30 year cap, it is just that the old rules 30 years amount gives a higher starting amount than the new rules 35 years less contracted out deduction.

QrizB

I think the OP should read some of @molerat 's posts explaining how starting amounts were calculated.

Edit to add: molerat beat me to the post!

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/6656241/did-dwp-ask-you-to-pay-voluntary-nic

So wrong.

The DWP limit contributions in the years prior to 2016 to 30 years. This is against the Pension Act 2014, which says that 35 or more qualifying years earned prior to 2016 result in a full pension post 2016.

molerat

OP, I suggest you read beyond part 1.2

(1)A person is entitled to a state pension payable at the full rate if—

(a)the person has reached pensionable age, and

(b)the person has 35 or more qualifying years.

which has a caveat at the bottom

(7)There are provisions elsewhere that affect a person's entitlement to a state pension under this section or the rate at which it is payable.

and go to schedule 1 which states exactly how the starting amount is calculated and why you may not get the full pension amount with 35 years.

2A person's amount for pre-commencement qualifying years is calculated as follows.

Step 1 - calculate the person's pension under the old system Calculate the weekly rate based on the old state pension and graduated retirement benefit (see paragraph 3 for more about this).

Step 2 - calculate a pension based on the new system Calculate the weekly rate based on the new state pension (see paragraph 4 for more about this).

Step 3 - take whichever rate is higher (the foundation amount) Take whichever of the rates found under Steps 1 and 2 is higher.

pinnks

You actually look first at Section 4 PA14 for those with a pre-6 April 2016 NI record. The method of calculation of the amount of their pension is, as you say, in Schedule 1.

"4 Entitlement to state pension at transitional rate

(1) A person is entitled to a state pension payable at the transitional rate if—

(a) the person has reached pensionable age,

(b) the person has at least the minimum number of qualifying years, and

(c) the person has at least one pre-commencement qualifying year.

(2) …

(3) A person entitled to a state pension payable at the transitional rate is not entitled to a state pension under section 2."

So, as you say, OP has been looking at the wrong part of PA14 and is clearly not entitled to a pension based on 35 years - they are entitled to a pension at the transitional rate based on Sections 4 and 5 and Schedule 1.