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UK State Pension.
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DavidJulie1955
Posts: 2 Newbie
I have recently written to Conor McGinn M.P. for St Helens
In 2013 I have told that the Department of Works and Pensions issued a white paper on the new UK State Pension. It was decided that going forward all UK residents that payed all the required number of years of national insurance contributions would then receive the NEW BASIC STATE PENSION
Of £ 159.55 per week.
My date of birth is 21/09/1955. As we all know due to the recent changes I will not receive my State Pension till I reach 66.
In 2012 I requested an estimate of my State Pension and on 23/07/2012 I was advised the following:-
Basic State Pension = £ 107.45 per week
Additional State Pension = £ 60.00 per week
Graduated Retirement Benefit = £ 1.25 per week.
Total State Pension = £ 168.70.
I recently applied on line to the Department of Works and Pensions on 29/12/2017 and received an updated estimate.
My new State Pension will be £ 193.25 per week when I reach 66.
I enquired how this figure was created. Reluctantly the person I spoke to told me the following calculation that the UK Government have instructed them to follow:-
Under the Old State Pension rules my State Pension had increased from £ 107.45 per week to £ 122.30 per week. My additional benefits had
increased from £ 61.25 per week to £ 70.95 week. Their calculations then gave the new total state pension of £ 193.25 per week.
I enquired why the calculation started with the lower figure from the old state pension rules and not follow the new rules starting the calculation
Of the new State Pension of £ 159.55 per week and then add the additional benefit of £ 70.95 per week giving me a new state
Pension of £ 230.50. I was told that the new rules do not allow this.
As you can clearly see I will receive £ 37.25 per week less that I believe I should which is £ 1937.00 per year.
Based on the change in the age using their lower figure of £ 193.25 per week I have already lost £ 10083.51 in that year together with the
Extra payment I firmly believe I should get of £ 1937.00 per year the total now is some £ 12020.51.
I have all the documents to support the above and would welcome the opportunity to show them to you and if possible I would like to request that you ask the following question in the House of Commons: -
Due to the recent changes in the Department of Works and Pension in the white paper of 2013 there are people that are reaching pensionable age who are being miss-treated. Please therefore could I ask the Government to confirm how many people are affected by this. (Please give them my details to support the question). What cost would it be to rectify this? For the record all these people have paid their full required contributions to receive their State Pension and others have paid extra in to the pension scheme to receive a higher pension.
I welcome other views on this.
In 2013 I have told that the Department of Works and Pensions issued a white paper on the new UK State Pension. It was decided that going forward all UK residents that payed all the required number of years of national insurance contributions would then receive the NEW BASIC STATE PENSION
Of £ 159.55 per week.
My date of birth is 21/09/1955. As we all know due to the recent changes I will not receive my State Pension till I reach 66.
In 2012 I requested an estimate of my State Pension and on 23/07/2012 I was advised the following:-
Basic State Pension = £ 107.45 per week
Additional State Pension = £ 60.00 per week
Graduated Retirement Benefit = £ 1.25 per week.
Total State Pension = £ 168.70.
I recently applied on line to the Department of Works and Pensions on 29/12/2017 and received an updated estimate.
My new State Pension will be £ 193.25 per week when I reach 66.
I enquired how this figure was created. Reluctantly the person I spoke to told me the following calculation that the UK Government have instructed them to follow:-
Under the Old State Pension rules my State Pension had increased from £ 107.45 per week to £ 122.30 per week. My additional benefits had
increased from £ 61.25 per week to £ 70.95 week. Their calculations then gave the new total state pension of £ 193.25 per week.
I enquired why the calculation started with the lower figure from the old state pension rules and not follow the new rules starting the calculation
Of the new State Pension of £ 159.55 per week and then add the additional benefit of £ 70.95 per week giving me a new state
Pension of £ 230.50. I was told that the new rules do not allow this.
As you can clearly see I will receive £ 37.25 per week less that I believe I should which is £ 1937.00 per year.
Based on the change in the age using their lower figure of £ 193.25 per week I have already lost £ 10083.51 in that year together with the
Extra payment I firmly believe I should get of £ 1937.00 per year the total now is some £ 12020.51.
I have all the documents to support the above and would welcome the opportunity to show them to you and if possible I would like to request that you ask the following question in the House of Commons: -
Due to the recent changes in the Department of Works and Pension in the white paper of 2013 there are people that are reaching pensionable age who are being miss-treated. Please therefore could I ask the Government to confirm how many people are affected by this. (Please give them my details to support the question). What cost would it be to rectify this? For the record all these people have paid their full required contributions to receive their State Pension and others have paid extra in to the pension scheme to receive a higher pension.
I welcome other views on this.
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Comments
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Which progressed to become Pension Act 2014, which is the legislative basis for the new State Pension scheme.In 2013 I have told that the Department of Works and Pensions issued a white paper on the new UK State Pension.
The new State Pension applies to all those reaching State Pension age on or after 6 April 2016. The standard rate is £159.55 in 2017/18, but in the early years of the new pension most will not receive that amount (some get more, some get less).It was decided that going forward all UK residents that payed all the required number of years of national insurance contributions would then receive the NEW BASIC STATE PENSION Of £ 159.55 per week.
So your starting amount for the new State Pension will be based on this amount. Further details set out at this link.In 2012 I requested an estimate of my State Pension and on 23/07/2012 I was advised the following:-
Basic State Pension = £ 107.45 per week
Additional State Pension = £ 60.00 per week
Graduated Retirement Benefit = £ 1.25 per week.
Total State Pension = £ 168.70.
You continued to accrue pension under the old system until 6 April 2016.Under the Old State Pension rules my State Pension had increased from £ 107.45 per week to £ 122.30 per week. My additional benefits had increased from £ 61.25 per week to £ 70.95 week. Their calculations then gave the new total state pension of £ 193.25 per week.
On 6 April 2016 your old State Pension was converted into new State Pension. This consists of a full new State Pension (£159.55) plus a protected payment which is the remainder of the value of your pension calculated under the old State Pension rules.
As you have a full new State Pension you ceased to accrue any more pension after 6 April 2016. Your new State Pension increases in line with the Triple Lock (best of earnings, CPI and 2.5%) and your protected payment increased by CPI from April 2016.
You were informed correctly.I enquired why the calculation started with the lower figure from the old state pension rules and not follow the new rules starting the calculation
Of the new State Pension of £ 159.55 per week and then add the additional benefit of £ 70.95 per week giving me a new state
Pension of £ 230.50. I was told that the new rules do not allow this.
The rules are intended to avoid individuals getting large unexpected gains in their State Pension entitlement due to a change in the calculation methodology whilst protecting pensions accrued which are higher than the new State Pension. You will receive the pension you had accrued at the the date of the change, with cost of living increases.
You will receive your statutory entitlement. What you believe you should receive is not relevant.As you can clearly see I will receive £ 37.25 per week less that I believe I should which is £ 1937.00 per year.
I may firmly believe the State should provide me with a Ferrari, but my MP is unlikely to be able to assist me. Although he would probably write me a polite response should I ask him, which is probably what you will receive, along with a reply from DWP setting out the relevant rules on calculating your pension entitlement. What matters is your legislative entitlement.Based on the change in the age using their lower figure of £ 193.25 per week I have already lost £ 10083.51 in that year together with the Extra payment I firmly believe I should get of £ 1937.00 per year the total now is some £ 12020.51.
That is a subjective view. Personally I would be aghast if those close to State Pension age were given large unexpected gains when they are already going to receive more than all future pensioners, and at an earlier age.Due to the recent changes in the Department of Works and Pension in the white paper of 2013 there are people that are reaching pensionable age who are being miss-treated.
That is the key point - you are going to receive what you paid for, not a large additional amount just because the rules changed when you were close to State Pension age.For the record all these people have paid their full required contributions to receive their State Pension and others have paid extra in to the pension scheme to receive a higher pension.
You are wasting your MP's time. There is no chance at the current time that the Government are going to legislate to increase the pensions of those close to retirement to give them large unexpected increases to their pensions.I welcome other views on this.0 -
So you believe you should receive both the new higher pension and the old additional pension. I am afraid it doesn't work like that, you can't have the best bits of both. You receive the higher of the new maximum £159.65 or the old £122.30 plus additional pension. I am sure if you asked nicely they would let you have just the new (lower) £159.65.0
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I have 41 years NI contributions but will only get £123 per week so you are lucky.0
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And don't even considered mentioning WASPE0
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DavidJulie1955 wrote: »I enquired why the calculation started with the lower figure from the old state pension rules and not follow the new rules starting the calculation
Of the new State Pension of £ 159.55 per week and then add the additional benefit of £ 70.95 per week giving me a new state
Pension of £ 230.50. I was told that the new rules do not allow this.
As you can clearly see I will receive £ 37.25 per week less that I believe I should which is £ 1937.00 per year.
I think the nub is that you are confusing the new state pension with the old Basic State Pension, when in reality it replaces both that and the old State Second Pension (and before that, SERPS). In other words, people of a generation younger than you but with a similar work history will only ever be able to earn the £159.55 in today's terms.0 -
I have 41 years NI contributions but will only get £123 per week so you are lucky.
You have obtained a new state pension statement?
https://www.gov.uk/check-state-pension
https://www.royallondon.com/Global/documents/GoodWithYourMoney/TOPPING-UP-YOUR-STATE-PENSION-GUIDE.pdf0 -
My new State Pension will be £ 193.25 per week when I reach 66.
You were never contracted out and had 40 years + NI at 6.4.16?
Then your starting amount as at 6.4.16 was the higher of
Full BSP (£119.30) +SERPS +S2P (old rules)
or Full NSP £155.65. (new rules).
In your case, the old rules calculation was the higher of the two and gave you an amount higher than a full NSP. This gives you NSP plus a "protected payment".
You cannot accrue any more SP with contributions.
The full NSP increases by (at the moment) the "triple link" and the "Protected Payment" by CPI.
The 2013 documents
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/181229/single-tier-pension.pdf
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/204604/single-tier-pension-transition-technical-note.pdf0 -
DavidJulie1955 - I suggest that you read the White Paper properly before embarrassing yourself further.
In a nutshell, the long term aim of the new single tier pension is that everyone with the requisite number of full NI contributions will receive the flat rate £159 per week.
In the meantime, transitional protections have been set in place to ensure that no-one will get less than the pension they expected under the old rules. In your case, that's the old basic State pension plus SERPS/SP2.
Nowhere in the White Paper does it say that you can cherry pick a combination of the old and new schemes just because you fancy a few bob extra.0 -
Silvertabby wrote: »DavidJulie1955 - I suggest that you read the White Paper properly before embarrassing yourself further.
In a nutshell, the long term aim of the new single tier pension is that everyone with the requisite number of full NI contributions will receive the flat rate £159 per week.
In the meantime, transitional protections have been set in place to ensure that no-one will get less than the pension they expected under the old rules. In your case, that's the old basic State pension plus SERPS/SP2.
Nowhere in the White Paper does it say that you can cherry pick a combination of the old and new schemes just because you fancy a few bob extra.
Hmm, bit harsh. If the OP hadn't maxed out his possible SERPS+S2P at the point contracting-out ceased, then he has lost out, albeit not for the reason he thought.0
This discussion has been closed.
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