Latest Moan From You and Me 2024

I was contracted out of SERPS for years until I went back in, I was unaware you could actually contract out of the whole state pension scheme entirely.

 

But its the NHS, all these state run things just haemorrhage money, they always have and always will.
You must not criticize the NHS because everyone comes down on you like a ton of bricks, but it really needs sorting out rather than just throwing money at it.

 

Seems the Tories did pledge to scrap NI by April 2029. They have already reduced contributions substantially by April 2024. It seems the National Insurance Fund has £80 billion in it so this can be used together with freezing the personal allowance. So let's see if Labour continue to scrap NI. NI for employers seems unchanged.

 

I thought the DWP can access pensioners' bank accounts as part of fraud prevention - to see if benefits claimants were receiving other income that wasn't being declared. Seems a good idea.

 

No, it's just contracting out of SERPS, but it reduces your entitlement to the full state pension (post-2016 version). You can then contribute past the 35 year mark to earn back that reduction.
It's the effect of the Transitional Rules between the old state pension (with SERPS) and the new one (higher basic but no SERPS).
The new State Pension transition and contracting-out: fact sheet

 

When I contracted out, I thought it would mean I would get more pension, but when I retired they just worked out how much the contracted part would give me in pension from the private company and knocked that off my state pension.

So the whole process of contracting out was a total waste of time and just another government farce.

 

Did you retire in 2016 or later? If so you should still have got the equivalent of the "old" basic state pension and maybe a bit more, you just didn't get the full amount of the new state pension. People a bit younger were luckier in that they had time post 2016 to continue contributing and build up to the full new state pension. That's my situation.

 

I'm happy for them to have the powers to look if they suspect benefit fraud, but I don't think they should be able to look at accounts of those only paid state pension and nothing else because it is none of their business.

 

I retired in 2021.

I could probably read that link 5 times over and never totally understand it.

 

It seems complex regards the state pension, but really it’s not! 2016 we got another new pension scheme which was basically more than 50% greater value than the previous scheme, but additional pension was dropped. In effect those that paid both pre 2016/17 contributions and post had a bigger window to pay arrears (very generous due to amendments to the bill). Any arrears paid for years on or after 2016/17 could therefore be much more beneficial than those paid prior. Despite some of the doubt here, HMRC (responsible for the collection and payment of contributions) and DWP for the pension calculation (stupid situation) they WILL help in telling you your best options. Paying pre 2016/17 years can be a total waste of time unless essential to qualify for minimum years.

 

So are you saying that paying SERPS all those years amounted to nothing, because that's what it seems like.

I know some people who retired some years ago get less than those who retired later but I dont think the difference is as much as 50%.

 

I paid into a company pension Until I retired, it turns out after 35 years my company had been taking pension holidays (whatever that is) and my pension after 35 years is now paid by PPF at 5% of what I had accumulated, Thus over the amount for UC :-(

 

I was just being lazy and not working out the exact difference/% , but the old pension is max £169.50/wk and the new pension (NP) £221.20, so quite a bit difference.
Not really sure what you are asking regards SERPS? Serps, or as it was when it came in "AC" (additional component) was was earnings related could result in more than 50% more pension per week for those under the old pension. The NP was greater per week to sugar the dropping of the earnings related aspect. It's the "greater" bit people need to note and know about, especially those paying missing years as they calculate your pension now based on what you would have got under the old against what you would get under NP. Paying missing arrears for post NP is in most cases much more beneficial, but as I said ask first and HMRC/DWP will advise you. Not checked in a long while, but know the cut-off extending the payment of these was put back, likely because they know they were open to claims due to lack of publicity (hence it's out there now).