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National Insurance

Old May 26th 2012, 2:08 am
  #16  
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Default Re: National Insurance

Originally Posted by ChelseaDagger View Post
Is there an expiration on being able to pay prior years Class 2 vouluntary NI payments to keep updated? I paid NI for a large part of the 30 year requirement but stopped when moving to US a few years ago. If it is only 130GBP per year & it pays out in full after 30, sounds like I should opt back in, if still open to me!
You can pay NI six years in arrears. Once you reach 30 years of contributions you qualify for a basic state pension and you should stop making voluntary payments, but you will have to wait until your retirement age before you can collect.
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Old May 26th 2012, 2:18 am
  #17  
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Default Re: National Insurance

Originally Posted by nun View Post
You can pay NI six years in arrears. Once you reach 30 years of contributions you qualify for a basic state pension and you should stop making voluntary payments, but you will have to wait until your retirement age before you can collect.
Thank you nun, I will investigate instigating payment for remainder
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Old May 26th 2012, 2:28 am
  #18  
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Default Re: National Insurance

Originally Posted by nun View Post
Once you reach 30 years of contributions you qualify for a basic state pension and you should stop making voluntary payments, but you will have to wait until your retirement age before you can collect.
Just to be clear, you qualify for a reduced state pension if you have less than 30 years of contributions ie with 25 years you get 25/30ths of the state pension at retirement.
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Old May 26th 2012, 2:49 am
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Default Re: National Insurance

I pay Class 3 voluntary contributions - this year it was £626.60. I think you can only pay the Class 2 contributions (which are lower) if you are employed or self-employed abroad. Someone can correct me if I am reading that wrong.

http://www.hmrc.gov.uk/ni/volcontr/abroad.htm#4
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Old May 26th 2012, 9:27 am
  #20  
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Default Re: National Insurance

Originally Posted by ChocolateBabz View Post
I pay Class 3 voluntary contributions - this year it was £626.60. I think you can only pay the Class 2 contributions (which are lower) if you are employed or self-employed abroad. Someone can correct me if I am reading that wrong.

http://www.hmrc.gov.uk/ni/volcontr/abroad.htm#4
That's right, the Class 2 contributions are ~ £130 this year.
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Old May 27th 2012, 4:43 pm
  #21  
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Default Re: National Insurance

Originally Posted by nun View Post
If you qualify for US SS and also get pensions paid out of non-SS income the SSA will only reduce your US SS if you have less than 30 years of SS payments. Then your US SS will be reduced on a sliding scale until the reduction reaches a maximum amount which is $380 a month for 2012. It can also never be reduced by more than half your non-SS pension. This is called the Windfall Elimination provision (WEP)
Here's the latest WEP chart from the SSA. If you have more than 20 years of SS payments, the maximum is reduced until, as you say, it's eliminated after 30 years of contributions. If you think you're going to have more than 20 years of SS contributions, paying voluntary UK NI contributions becomes progressively more of a no-brainer, imo.

http://www.ssa.gov/retire2/wep-chart.htm#table
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Old May 27th 2012, 5:37 pm
  #22  
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Default Re: National Insurance

Originally Posted by ChelseaDagger View Post
Is there an expiration on being able to pay prior years Class 2 vouluntary NI payments to keep updated? I paid NI for a large part of the 30 year requirement but stopped when moving to US a few years ago. If it is only 130GBP per year & it pays out in full after 30, sounds like I should opt back in, if still open to me!
Even if you do not pay anything more into NI you will be entitled to a percentage of the Pension relative to what you have paid. You can write and ask them where you stand now and what is required for you to pay to catch up to the full 100%.
I left UK in 1981 and caught up over the last 5 years by making a couple of lump sum payments. So, now, in 4 years time I can claim the full UK pension + an additional 70% for the missus. A great investment at anytime but with what else has happened in the last 4 years this one is gilt-edged.
Also, if you draw it in the USA it is index linked. I left Australia last year where, once it is drwan for the first time that is the level it stays at forever. The same for Canada and South Africa and, I believe, for any Commonwealth country.
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Old May 29th 2012, 1:23 pm
  #23  
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Default Re: National Insurance

Thanks to all for their comments. I think I'll continue paying into NI.
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Old Jun 4th 2012, 11:23 pm
  #24  
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Default Re: National Insurance

Great info all. I've been in the US for 9 years now and am thinking about doing this and playing catch-up.

What's the best way to contact them? Their website is a little confusing on the contact methods.

Cheers,
David.
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Old Jun 5th 2012, 12:01 am
  #25  
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Default Re: National Insurance

Originally Posted by datcha View Post
Great info all. I've been in the US for 9 years now and am thinking about doing this and playing catch-up.

What's the best way to contact them? Their website is a little confusing on the contact methods.

Cheers,
David.
Here is everything you need to know. The application to pay voluntary NI while overseas is at the back of the leaflet

http://www.hmrc.gov.uk/pdfs/nico/ni38.pdf
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Old Jun 5th 2012, 12:02 am
  #26  
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Default Re: National Insurance

Originally Posted by nun View Post
Here is everything you need to know. The application to pay voluntary NI while overseas is at the back of the leaflet

http://www.hmrc.gov.uk/pdfs/nico/ni38.pdf
Bootiful! Thanks
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Old Jun 7th 2012, 12:27 am
  #27  
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Default Re: National Insurance

regarding the pesky W.E.P. (windfall elimination provision), it is not applied to voluntary N.I. contributions. It is only applied to the contributions you made when working in U.K.



All the more reason to send in those voluntary contributions.
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Old Jun 7th 2012, 1:02 am
  #28  
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Default Re: National Insurance

Originally Posted by nearpost1 View Post
regarding the pesky W.E.P. (windfall elimination provision), it is not applied to voluntary N.I. contributions. It is only applied to the contributions you made when working in U.K.



All the more reason to send in those voluntary contributions.
Can you show us where you read this?
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Old Jun 7th 2012, 1:12 am
  #29  
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Default Re: National Insurance

nun, I will double check right now, it's been a while since I found this out.
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Old Jun 7th 2012, 1:16 am
  #30  
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Default Re: National Insurance

just have now, found this, but I am still looking

http://www.justanswer.com/social-sec...ributions.html
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