"New" State Pension and "old" additional pension entitlement
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jewellery10
Posts: 20 Forumite
My state retirement pension age is 66 in 2025.
I know that the government has introduced a "new" state pension, and as long as I have 35 years of NI contributions before the 2025 deadline that I will be entitled to that full state pension.
What happens to the SERPS/additional state pension(s) I contributed to over the past 30+ years?
During those 30 years I was contracted in (paying full rate NI contributions) and also contracted out (reduced NI contributions with the government making payments to my employers pension scheme).
My online pension forecast states what I will be entitled to with 35 years of my (mixed) NI contributions and also my contracted out (COPE) figure.
What is the situation with regard to my SERPS entitlement?
I cannot find any explanation on the government website, so any links to documents that explains the complexities of state pensions in lay person terms will be appreciated.
I know that the government has introduced a "new" state pension, and as long as I have 35 years of NI contributions before the 2025 deadline that I will be entitled to that full state pension.
What happens to the SERPS/additional state pension(s) I contributed to over the past 30+ years?
During those 30 years I was contracted in (paying full rate NI contributions) and also contracted out (reduced NI contributions with the government making payments to my employers pension scheme).
My online pension forecast states what I will be entitled to with 35 years of my (mixed) NI contributions and also my contracted out (COPE) figure.
What is the situation with regard to my SERPS entitlement?
I cannot find any explanation on the government website, so any links to documents that explains the complexities of state pensions in lay person terms will be appreciated.
0
Comments
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https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/447195/new-state-pension--effect-of-being-contracted-out.pdf
But for BSP read £119.30 and for NSP £155.65.
In a nutshell - at 6/4/16 two calculations were done
Old Rules
NI years/30 + (SERPS/S2P - deduction for contracting out)
New Rules
(NI years/35 x £155.65) - COPE.
Your starting amount was the higher of the two.
If your 'starting amount' was more than the full amount of the new State Pension, any amount over that level will be protected and paid on top of the full amount when you start to claim the new State Pension. You cannot improve the amount by additional contributions but must continue to pay NI while under SPA and earning the relevant amount.
If your starting amount was less than the full amount of the new State Pension you may be able to build up a higher level of new State Pension through contributions and credits you make between 6 April 2016 and when you reach State Pension age.
If your starting amount was equal to the new state pension, then you cannot improve the amount by additional contributions but must continue to pay NI while under SPA and earning the relevant amount.0
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