UK state pension reform
Jan 17th 2013, 2:36 am
#46
Oscar nominated
Joined: Jan 2008
Location: Moncton, NB, CANADA
Posts: 51,872
Re: UK state pension reform
For any of us with 30 years of NICs who will be retiring after 2017 we will be better off under the reforms even if we don't pay the extra 5 years of contributions. If we qualify for just 30/35ths of the increased flat rate state pension in today's dollars it will be
30/35 * 144GBP = 123GBP
whereas the current basic state pension is 107GBP.
30/35 * 144GBP = 123GBP
whereas the current basic state pension is 107GBP.
More annoying than death itself.
Jan 17th 2013, 3:04 am
#47
Heading for Poppyland
Joined: Jul 2007
Location: North Norfolk and northern New York State
Posts: 14,719
Re: UK state pension reform
Jan 17th 2013, 3:09 am
#48
BE Forum Addict
Thread Starter
Joined: Aug 2004
Posts: 4,754
Re: UK state pension reform
Here is DPW's response to my email asking about how the reforms affect those paying voluntary NICs. It seems very reasonable. We won't be any worse off, and we'll get a longer time to make catch up payments. I have no complaints as Class 2 NICs are a great value at 30 or 35 years. If you are at 30 years of NICs the thing to do is to wait until the legislation is passed and then decide whether to make catch up payments based on a new pension forcast.
Class 2 (voluntary) National Insurance (NI) contributions
My apologies, I was unaware that you are currently paying Class 2 National Insurance (NI) contributions on a voluntary basis as you live overseas.
White Paper proposals
One of the proposals in the White Paper is that nobody will get a State Pension lower than the valuation of their National Insurance record in the current scheme when single tier is introduced.
Therefore if the Government does increase the qualifying years from 30 to 35 (as outlined in the White Paper), if you have less than 35 qualifying years by State Pension age, you will get a pro-rata amount of the top rate single-tier State Pension. However, your payable State Pension would not be less than what you would get under the current scheme.
If you are due to reach State Pension age after the single-tier changes are introduced*, you should wait until those changes are approved by Parliament and DWP can provide full estimates of your single-tier State Pension before deciding whether to continue paying voluntary NI contributions.
HM Revenue and Customs are taking steps to extend the time limits for paying voluntary National Insurance contributions to 5 April 2023 for the tax years 2006/07 – 2015/16 and you will only pay at the rate that was due for that tax year.
*The earliest date that the single-tier will be April 2017.
Further information
If you need to contact us, our telephone number is shown at the end of this email.
Yours sincerely
Sean Goodwin
Correspondence Officer
Future Pension Centre
The Pension Service
Tyneview Park
Newcastle upon Tyne
NE98 1BA
Our phone number 0845 3000 168
Our opening hours
Mon-Fri 8:00am - 6:00pm
Our fax number 0191 218 7006
If you have a textphone 0845 300 0169
E-mail [email protected]
Website www.gov.uk
Class 2 (voluntary) National Insurance (NI) contributions
My apologies, I was unaware that you are currently paying Class 2 National Insurance (NI) contributions on a voluntary basis as you live overseas.
White Paper proposals
One of the proposals in the White Paper is that nobody will get a State Pension lower than the valuation of their National Insurance record in the current scheme when single tier is introduced.
Therefore if the Government does increase the qualifying years from 30 to 35 (as outlined in the White Paper), if you have less than 35 qualifying years by State Pension age, you will get a pro-rata amount of the top rate single-tier State Pension. However, your payable State Pension would not be less than what you would get under the current scheme.
If you are due to reach State Pension age after the single-tier changes are introduced*, you should wait until those changes are approved by Parliament and DWP can provide full estimates of your single-tier State Pension before deciding whether to continue paying voluntary NI contributions.
HM Revenue and Customs are taking steps to extend the time limits for paying voluntary National Insurance contributions to 5 April 2023 for the tax years 2006/07 – 2015/16 and you will only pay at the rate that was due for that tax year.
*The earliest date that the single-tier will be April 2017.
Further information
If you need to contact us, our telephone number is shown at the end of this email.
Yours sincerely
Sean Goodwin
Correspondence Officer
Future Pension Centre
The Pension Service
Tyneview Park
Newcastle upon Tyne
NE98 1BA
Our phone number 0845 3000 168
Our opening hours
Mon-Fri 8:00am - 6:00pm
Our fax number 0191 218 7006
If you have a textphone 0845 300 0169
E-mail [email protected]
Website www.gov.uk
Jan 17th 2013, 3:10 am
#49
BE Forum Addict
Joined: Jan 2011
Location: Tunbridge Wells KENT
Posts: 2,914
Re: UK state pension reform
Such a good deal for Class 2s in particular, it is probably not something an expat would want to brag about too much down the local upon a return.
"HM Revenue and Customs are taking steps to extend the time limits for paying voluntary National Insurance contributions to 5 April 2023 for the tax years 2006/07 – 2015/16 and you will only pay at the rate that was due for that tax year." - The mind boggles at what the UK Treasury is taking on as additional pension liabilities in exchange for precious little cash but then I guess they don't actually book them. Worth a ride for as long as this largesse can last.
Last edited by Pistolpete2; Jan 17th 2013 at 3:38 am. Reason: HM Revenue........ largesse
Jan 18th 2013, 12:45 am
#50
BE Enthusiast
Joined: Nov 2010
Posts: 377
Re: UK state pension reform
For any of us with 30 years of NICs who will be retiring after 2017 we will be better off under the reforms even if we don't pay the extra 5 years of contributions. If we qualify for just 30/35ths of the increased flat rate state pension in today's dollars it will be
30/35 * 144GBP = 123GBP
whereas the current basic state pension is 107GBP.
30/35 * 144GBP = 123GBP
whereas the current basic state pension is 107GBP.
Jan 18th 2013, 1:42 am
#51
Ping-ponger
Joined: Jul 2002
Location: Dreich Alba
Posts: 12,024
Re: UK state pension reform
What a wonderful lady she was! - You forgot to mention the Negative equity - how many people was who lost their homes? Only one group of folks came off good from her schemes.
Ask any ex-miner or ex- steel worker - see if they thought she did good. Should have been hung for destroying our production base, in my opinion.
P.S. Never drive to the Hospital - always use a free bus pass.
Ask any ex-miner or ex- steel worker - see if they thought she did good. Should have been hung for destroying our production base, in my opinion.
P.S. Never drive to the Hospital - always use a free bus pass.
I'm afraid I have little faith in any of the major parties thanks to past experience. I find it difficult sometimes to figure out why Maggie is singled out for so much more flak when we have had some pretty poor examples before and after her - I wouldn't trust Blair with a 20 ft bargepole and in his own unique way he has caused just as much grief for a lot of people.
Maggie was no saint but neither was Scargill at the time (his ego played a role in the miners' situation, if the history books are to be believed) and neither was Blair in the 90s, less than a decade after Maggie was booted out of Number 10.
I know a few people who came off pretty well during the Thatcher years from buying their council houses for a song, buying shares in the privatised companies (British Gas etc.) and selling weeks later, etc.
Jan 18th 2013, 3:01 am
#52
BE Forum Addict
Joined: Jun 2009
Location: Phibun Mangsahan Ubon Province Thailand.
Posts: 1,073
Re: UK state pension reform
No, Don, I definitely didn't forget. I was a homeowner at the time so I remember it painfully well (double-digit interest rates!) - same thing at the moment (re: negative equity at least), but this time thanks to New Labour.
I'm afraid I have little faith in any of the major parties thanks to past experience. I find it difficult sometimes to figure out why Maggie is singled out for so much more flak when we have had some pretty poor examples before and after her - I wouldn't trust Blair with a 20 ft bargepole and in his own unique way he has caused just as much grief for a lot of people.
Maggie was no saint but neither was Scargill at the time (his ego played a role in the miners' situation, if the history books are to be believed) and neither was Blair in the 90s, less than a decade after Maggie was booted out of Number 10.
I know a few people who came off pretty well during the Thatcher years from buying their council houses for a song, buying shares in the privatised companies (British Gas etc.) and selling weeks later, etc.
I'm afraid I have little faith in any of the major parties thanks to past experience. I find it difficult sometimes to figure out why Maggie is singled out for so much more flak when we have had some pretty poor examples before and after her - I wouldn't trust Blair with a 20 ft bargepole and in his own unique way he has caused just as much grief for a lot of people.
Maggie was no saint but neither was Scargill at the time (his ego played a role in the miners' situation, if the history books are to be believed) and neither was Blair in the 90s, less than a decade after Maggie was booted out of Number 10.
I know a few people who came off pretty well during the Thatcher years from buying their council houses for a song, buying shares in the privatised companies (British Gas etc.) and selling weeks later, etc.
Jan 18th 2013, 3:02 am
#53
BE Forum Addict
Joined: Nov 2012
Location: Back in the UK!
Posts: 2,404
Re: UK state pension reform
The Government has published it's pension reforms. The key things are that it goes into effect in 2017, that the full state pension will be 144GBP for everyone with 35 (not 30) years of NI credits. This is mostly a good thing for those paying voluntary Class 2 NI as it increases the pension benefit, but going form 30 to 35 years of NI to qualify for it is a bit of a hit. I'm not sure what the situation is for people who already qualify for full pension under the old rules by having 30 years of contributions. Are the grandfathered in or do they have to pay 5 more years of NI?
http://www.guardian.co.uk/money/2013...m-flat-payment
http://www.guardian.co.uk/money/2013...m-flat-payment
Jan 18th 2013, 3:07 am
#54
Ping-ponger
Joined: Jul 2002
Location: Dreich Alba
Posts: 12,024
Re: UK state pension reform
I can only agree with you and the present situation - everyone is suffering - Well ''we are all in this together'', but I can't find the others. I lost £100 within weeks of them getting in ( which they didn't do really) and however we look at it now, I am pretty sure, the Lib Dems, have lost their edge! - But then, who is opposing them?
I'm sure there are a few more than just you and me, but those who tell us that "We" are all in it together usually mean "You". I don't think many politicians are hurting for cash. Their pensions don't even come under the state pension reform.
Jan 18th 2013, 3:08 am
#55
BE Forum Addict
Joined: Nov 2012
Location: Back in the UK!
Posts: 2,404
Re: UK state pension reform
Nun, I know this was covered somewhere else, but I cannot locate it at the present time. Do you know if there is a form online to apply to make contributions? Someone mentioned they had called and was directed to a form. I need to find out if I can make Class 2 payments and how to go about it. Thanks.
Also, it includes an email specific to those of us overseas:
[email protected]
Jan 18th 2013, 3:12 am
#56
BE Forum Addict
Joined: Jul 2010
Location: Scotland, just!
Posts: 2,053
Re: UK state pension reform
Nun, I know this was covered somewhere else, but I cannot locate it at the present time. Do you know if there is a form online to apply to make contributions? Someone mentioned they had called and was directed to a form. I need to find out if I can make Class 2 payments and how to go about it. Thanks.
Jan 18th 2013, 4:12 am
#57
BE Forum Addict
Thread Starter
Joined: Aug 2004
Posts: 4,754
Re: UK state pension reform
Nun, I know this was covered somewhere else, but I cannot locate it at the present time. Do you know if there is a form online to apply to make contributions? Someone mentioned they had called and was directed to a form. I need to find out if I can make Class 2 payments and how to go about it. Thanks.
http://www.hmrc.gov.uk/pdfs/nico/ni38.pdf
Jan 18th 2013, 4:13 am
#58
BE Forum Addict
Thread Starter
Joined: Aug 2004
Posts: 4,754
Re: UK state pension reform
Actually, my state pension summary says it's Class 3 (not 2) payments
Also, it includes an email specific to those of us overseas:
[email protected]
Also, it includes an email specific to those of us overseas:
[email protected]
Jan 18th 2013, 4:34 am
#59
Back from India
Joined: Jun 2006
Location: UK
Posts: 793
Re: UK state pension reform
Stunningly quick reply, all be it standardised but at least I knew it had been read, from DWP today. We are covered in snow and I was bored so thought I would chase up my concern having done my 30 years and now told need 35.
They replied in 4 hours!! As said by others looks like I can buy back some more years for the same price as now so not so bad, but a shame they do not propose to allow those who had completed 30 years by the time they announce changes to be considered to have paid up!
They replied in 4 hours!! As said by others looks like I can buy back some more years for the same price as now so not so bad, but a shame they do not propose to allow those who had completed 30 years by the time they announce changes to be considered to have paid up!
Jan 18th 2013, 4:34 am
#60
BE Enthusiast
Joined: May 2012
Location: Nebraska by the Sea
Posts: 987
Re: UK state pension reform
Call me confused? I looked at the links above. What is the distinction between C2 and C3 contributions? At one point it seems class 3 apply then the form reverts to class 2?
The the web link: www.dwp.gov.uk/international in the form essentially says nothing.
So at the risk of frustrating people, in the asked and answered mode.
As a person who paid UK contributions while employed in the UK 20 years ago. And has since paid into US SS. Whats my best way forward? Does the US SS payments have some reciprocity. It seems to indicate yes but no infor on the link? Should I be paying now if I am returning?
The the web link: www.dwp.gov.uk/international in the form essentially says nothing.
So at the risk of frustrating people, in the asked and answered mode.
As a person who paid UK contributions while employed in the UK 20 years ago. And has since paid into US SS. Whats my best way forward? Does the US SS payments have some reciprocity. It seems to indicate yes but no infor on the link? Should I be paying now if I am returning?
