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    • vickk
    • By vickk 10th Apr 18, 3:02 PM
    • 74Posts
    • 10Thanks
    vickk
    State Pension and Ni contributions
    • #1
    • 10th Apr 18, 3:02 PM
    State Pension and Ni contributions 10th Apr 18 at 3:02 PM
    I am due to get my state pension as from 15th May this year. I have looked online at my personal pension forecast and it give 2 figures. The one I am entitled to now and a higher one once my NI contributions for the tax year just ended are added to my account.
    The thing is that HRMC say that the Ni update is automatic and will be anytime in the next 6 months and the pension service say in order to get he higher figure I should delay claiming until it is updated.
    First question is, are they correct in saying that my NI contributions at the time of claiming is what will count and the final year will not be taken into account if i don't wait?

    If I do wait then will my pension be paid back dated to retirement date or only from claim date and if so I will lose the weeks that I have not claimed.( this is not connected to deferring as I know I can defer for 9 weeks to get extra pension but is not something I want to do)?

    Any advice welcome as the pension service and HRMC seem to disagree
Page 1
    • molerat
    • By molerat 10th Apr 18, 3:15 PM
    • 19,142 Posts
    • 13,337 Thanks
    molerat
    • #2
    • 10th Apr 18, 3:15 PM
    • #2
    • 10th Apr 18, 3:15 PM
    The pension you will be due is that including last year's NI. The problem is that the system grinds along slowly and last year will not be added immediately. If you claim when due you will be paid at the one year less rate but when the NI is updated you will start receiving the updated rate plus any backpay. If you defer until after the NI record is updated you will receive the correct amount plus any deferral increment.
    www.helpforheroes.org.uk/donations.html
    • vickk
    • By vickk 10th Apr 18, 3:31 PM
    • 74 Posts
    • 10 Thanks
    vickk
    • #3
    • 10th Apr 18, 3:31 PM
    • #3
    • 10th Apr 18, 3:31 PM
    Thanks for that Molerat. When you say I will receive any deferral increment I assume that means I will have to deffer at least 9 weeks?

    However If I claim now then you are saying I will not lose out as the additional year will eventually be taken into account which is contrary to the advice given out by the pensions girl as she advised me to phone HRMC to get the update done early to avoid issues. Not that the HRMS were helpful with this
    • vickk
    • By vickk 11th Apr 18, 5:27 PM
    • 74 Posts
    • 10 Thanks
    vickk
    • #4
    • 11th Apr 18, 5:27 PM
    • #4
    • 11th Apr 18, 5:27 PM
    Hi Molerat. If you are certain that you are correct then I will go ahead and fill in my claim for pension,
    • molerat
    • By molerat 11th Apr 18, 6:19 PM
    • 19,142 Posts
    • 13,337 Thanks
    molerat
    • #5
    • 11th Apr 18, 6:19 PM
    • #5
    • 11th Apr 18, 6:19 PM
    There was a thread here a couple of weeks back with exactly the same scenario and the person they spoke to gave the answer as I stated. The problem speaking to the pension helpline is that you only stand a 50-50 chance of getting a correct answer !
    www.helpforheroes.org.uk/donations.html
    • greenglide
    • By greenglide 11th Apr 18, 6:20 PM
    • 3,145 Posts
    • 2,048 Thanks
    greenglide
    • #6
    • 11th Apr 18, 6:20 PM
    • #6
    • 11th Apr 18, 6:20 PM
    If the contributions data for 2017/2018 are not available when you claim there is a process whereby DWP ask HMRC to expedite them (in the old days this could include writing to the employer to ask them).

    The pension will be put into payment using what they have so far and then the award is revised when the correct data is available.

    This is a "business as usual" operation which happens all of the time. Arrears are paid when the award is updated - you will not lose out.
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