Not getting a full state pension?

[force ten]

yes sounds very much like they were opted out of serps

Why would I have been contracted out?
Opting out of SERPS meant you’d pay lower or redirected National Insurance Contributions in exchange for what would hopefully be a higher private pension. It was therefore popular with employers, as it meant they had to pay less National Insurance.

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there were many people that were opted out and never even knew about it as when you were opted out your employer paid less national insurance contributions on your behalf so the company saved money and you got less state pension

[bonnies mum]

I wont get a full state pension (due yo start in November) as I was contracted out due to my work pension scheme. I dont lose a great deal think something like £10 per 4 weeks. My DH gets less than I will as he has his NHS pension.
Might be private pension affecting your parents.

[tspill]

Sounds like an interpretation of that they contracted out of SERPS and contributed to an occupational pension. But if they did this, then they will have saved in NI contributions and paid into that occupational pension. Many (including me) did this.
So they didn't lose out at all. They (or their company) just chose a different path and more than likely have done better overall when you combine both.
PS they may be able to buy some of these years of SP - which if they can is the best money they could spend.

[djewkes]

My DH was short on a couple of years NI contributions, a quick call and a nice young man sorted it for us, told us which years were the cheapest to buy (can vary by several hundred pounds) and about £150 got him an extra £10 a week for life... bargain! And just because you’ve been contracted out doesn’t necessarily mean you get less SP... I was contracted out for 14 years but because I had worked a lot of hours in a second job I actually got £15 a week extra SP... it can be complicated...

[TractorBoy]

Originally Posted by MrsBC

You are right. I get my state pension this year and will be getting the full amount despite having a reasonable NHS pension.
If at any time through the years they haven't paid full contributions they won't get the full state pension - if they make a Personal Tax Account online (google it, its the government one) they can see if they have any 'gaps' during their working life. It's very easy to do.

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Quick question. I paid into a private pension and have full NI contributions but I am not entitled to a full government pension because of the private pension.

Have I missed something?

[sophiepop]

Thank you so much for your replies. Between all of your answers you have answered my question.

My Dad was opted out for a while, his is the one that isn't a full state pension. So I guess he's getting a bit confused about why he's getting less.

I was opted out for a while but I have been forecast to get a full state pension? Could this be because I have worked enough years in total and the opted out bit was minimal? I can't remember opting back in though but I am sure I have read this was done automatically?

Thanks again

[deeley]

I’ve read up on this now based on your thread, as I would be affected. However for every year I work after 2016 I claw some money back, and something I think I read last night said in eight years I’ll have replaced the missing amount and will be back onto full state pension expectations . Definitely April 2016 seems to be the big line in the sand in terms of pensions and serps. Seems to affect many public services pensions.

Thanks for heads up.

[tspill]

Originally Posted by sophiepop

Thank you so much for your replies. Between all of your answers you have answered my question.

My Dad was opted out for a while, his is the one that isn't a full state pension. So I guess he's getting a bit confused about why he's getting less.

I was opted out for a while but I have been forecast to get a full state pension? Could this be because I have worked enough years in total and the opted out bit was minimal? I can't remember opting back in though but I am sure I have read this was done automatically?

Thanks again

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Those that opted out up until 5th April 2016 will have earned the basic SP at that time - assuming they had at least 30 years. That was £119 PW (plus inflation increases). This is when the new flat rate was introduced. At that point, additional pension could be earned on top of the old basic SP to get to the new flat rate. This would probably take until sometime in the tax year to 5th April 2024 (assuming they are young enough to work until then), and is exactly the position my OH is in.
If they cant work until that point, they cant achieve a new full SP.

If they contracted in at any point before 5th April 2016, then they will have earned more than the old basic SP. If they has been contracted in for enough years before 2016, they might have earned enough to get the new SP by this stage (the situation I am in myself as I was contracted in from 2009).

Unfortunately it is quite complex.

[Stu]

I was contracted out but at the time didn’t really grasp the significance of it, it was only when I checked my state pension forecast a few years ago that things became clear.

Anyone can Check their State Pension forecast at the link below, it will show if you are expected to get the full pension or if you need to pay-in National Insurance contributions in the coming years to raise the pension to full status.

gov.uk/check-state-pension

[tspill]

Originally Posted by Stu

I was contracted out but at the time didn’t really grasp the significance of it, it was only when I checked my state pension forecast a few years ago that things became clear.

Anyone can Check their State Pension forecast at the link below, it will show if you are expected to get the full pension or if you need to pay-in National Insurance contributions in the coming years to raise the pension to full status.

gov.uk/check-state-pension

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You can also purchase missed years in many cases.