PeteMc

I worked in the UK for 5 years before emigrating to California in 1982. I now have worked 32 years in the USA, paying Social Security during the complete period.
I have tried to understand if I qualify for a UK state pension, but I am confused by the information that I have seen.
I read that you need at least 10 years of National Insurance contributions to qualify for a UK pension, but I also read that there is an agreement between the UK and USA where Social Security contributions are considered in lieu of NI payments.
Can anyone please shed some light on whether I might qualify for a UK state pension?
Cheers
Pete

Asg123

I don't know the answer, perhaps someone knowledgeable will respond. But I think you can pay NI for the past 5 years and then you'll qualify.

quiltman

You can elect to pay voluntary contributions for 6 years back - was class 2 but believe now it's class3, a much higher rate. If you contact the pensions dept you can get an estimate of your pension and decide if it's worth buying extra years.
Pulaski seems to be up to date with all this and I expect he'll be along later with some of his considered words of wisdom.

nun

You can use your US SS contributions to qualify for a UK state pension, but the amount you get will be calculated using only the National Insurance contributions you made......so a simplistic answer is; yes you can qualify, but you'll only get 5/35ths of the UK state pension.

Owen778

It is not Class 3 until at least UK tax year 2017/18, which is why paying for the previous years now before it changes is a probably good idea.

Pulaski

Six years arrears, plus current year, but I think the payment has to be made before retirement.

The OP might also have some "deemed" years, for years in full time education after the age of 16, which could be five years if he stayed at school to 18 then did a degree.

PeteMc

Thanks for all the responses, and you are all correct in your answers. I spoke with the pension people today and here's the summary of what I found, maybe it will help others with similar questions:

1. You definitely need a minimum 10 years of NI in the UK
2. You can pay voluntary contributions, but only up to the year you retire, and up to a max of 6 years
3. Because I am no longer employed (retired), I would have to pay class 3 voluntary contributions
4. US Social Security contributions are taken into account to qualify for the pension, but you still have to have a min of 10 years NI
5. The amount to get is based solely on the number of years you have contributed to NI. For me, 10 years out of 35 would give me 10/35 reduction in state pension

Since I no longer know my NI number, I need to wait until I find out what it is. Once I find it I will ask for a state pension statement. I also believe that time spent as a student over 18 counts, I'll check into it more then see if the cost of the additional years of NI will be worth it.

I should also add that anyone in a similar situation should be aware that the Windfall Elimination Provision (aka WEP) means that for every $2 of UK state pension, the social security will be reduced by $1 (your amount might vary).

Cheers for the help
Pete

Nutmegger

I believe you said you have paid into US social security for over 30 years, thus your US pension should not be subject to WEP.

Pulaski

Full time education past the age of 16, per my post #6, above.

Also, Nutmegger is correct: if you have 30 years of social security contributions, then it is exempt from WEP.

PeteMc

I missed that you said student time over 16. I graduated when I was 22, so that would mean that I should already have 11 years of NI credited to me, 6 years as a full-time student plus 5 years employment.
This would mean that I do not have to add any voluntary contributions to be eligible for the state pension.

It is also good to know that my years of paying SS will help me avoid WEP.

Once I get my NI number, I will get a state pension statement which will hopefully confirm all of this.

That changes my situation significantly, thank you all.

Pete

kodokan

I have 19 years on my statement:

- 3 are for ages 16-19 when I was in full time education; I was doing a degree until 21 but only ages 16-19 counted - it's for the secondary education period, not tertiary.
- 8 years of employment from the years when I was 21-29
- then 8 years of Home Responsibilities Protection, the credit they used to give out if you were receiving Child Benefit or a carer's allowance (don't know if they still do).

So based on my statement, you likely won't get as many education credits as you were hoping for. Still, you should only be a couple of years off qualifying with voluntary contributions, and sounds like you'll start claiming almost immediately, so the return on those sums is excellent. (I won't be claiming for a couple of decades, so also have to factor in lost opportunity cost on how else I could be investing the voluntary contribution money during that time.)