NI Payments?
 

Hi,

Can anyone give me information on National Insurance payments?

I am leaving the UK in a couple of months for Canada, and I am little unclear what to do. I have seen snippets of information on the internet about people continuing to pay NI contributions for one reason or another, so I would be interested to know what everyone else has done.

Many Thanks,

Re: NI Payments?
 

I left the UK in 1999 and I understand there have been some changes since, but this was my experience.

First off, contact the NI/pensions office - it is somewhere on Tyneside. You can write and ask them for a summary of your NI record and a projection of your pension on retirement. At that time, IIRC, you needed 12 years of contributions of a 1/4 pension and 21 years contributions for a 1/2 pension.

I had 22 years of contributions so I did nothing. When I get to 65 I will claim my half UK state pension. It will be half whatever the going rate is at the time. You are probably aware that the pension will never be increased - but that is another story/thread.

My wife had 10 years contributions credited to her record. We opted to pay 2 years of voluntary contributions on her behalf after we arrived in Canada to get to the 12 years needed for a 1/4 pension.

If your move to Canada is only temporary you may want to pay more voluntary contributions to keep your UK record intact. If your move is permanent do what I did and find out where you stand, and the cost/benefit of making further contributions.

Re: NI Payments?
 

There have been some changes.

Depending on when one reaches retirement age, a pension forecast may not be available for several months yet.

The good news is that in future a full pension will be payable where 30 years have been paid.

So, JonboyE, your half pension may actually becom two thirds.

It's worth looking at the Pensions Service site.

Re: NI Payments?
 

This one too for free impartial advice
http://www.pensionsadvisoryservice.org.uk/

Re: NI Payments?
 

Hi Jon - I am paying voluntary NI contributions to top up my pension - I have made 28 years contributions so wanted to top it up to the maximum 30 years necessary to get a full pension :)

NI number in Newcastle is 0191 225 7979 (this is the number for the Charity Assets and Residence department who deal with overseas citizens). They were super helpful when I called, did all the calculations and approved me making voluntary Class 2 contributions, which are at the lower rate - 2 pounds 30 a week. You can only opt to pay this lower amount if you were in employment in the UK just prior to leaving the country. If you were not working then you would have to pay Class 3 contributions, which are about eight pounds a week.

IR76(2000) is the booklet you need to read - you can find it by doing a search on http://www.hmrc.gov.uk

Is it worthwhile doing? Depends I guess on how many years you have already put in.

Good luck! J ;)

Re: NI Payments?
 

Now that is some seriously good news. :)

Re: NI Payments?
 

Brilliant!

Thank you all for your advice, I will definitely look into that.

Jon

Re: NI Payments?
 

Interesting thread - thanks for the information regarding reduced contributions. Does Canada have the same contribution system in place? Are immigrants eligible for a Canadian pension? I will probably get a two-thirds British pension, but just wondered if I would get a part Canadian pension to top it up - I will have been working in Canada 26 years by retiring age. Any info gratefully received!

Re: NI Payments?
 

You will get Old Age Security which is based on residency. The amount you receive is:

(Number of years resident in Canada after age of 18) / 40 x monthly amount

The monthly amount is $476.00 at the moment.

You will also qualify for the Canada Pension Plan. This is based on the contributions you have made.

Re: NI Payments?
 

If you are making CPP contributions (and if you are employed then you and your employer should be!) then yes. You should be receiving an annual statement setting out how much you have contributed. Check out this website where you will find all the information you need.

J :)