NoRegretsCoyote
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Class 3 is also very good value under any assumption about life expectancy.
UK State pension - Am I class 2 or Class 3
- Thread starter DannyBoyD
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Is this correct?
You pay GBP 824.20 once-off to buy one extra year (max years = 35)
In return, the pension increases by (1/35)(185.15) (52) = 275 pa for each year after age 67?
So the breakeven is three years??
NoRegretsCoyote
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More like three and a half.
But if you are (say) a 40-year-old today your life expectancy is something like 42 more years . So (82-67)=15 years of UK pension.
It's still a very good expected investment return.
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I'm just looking at the CF83 form now. It seems like it's intended for people who are only temporarily living abroad - just wondering how others answered these questions or have any thoughts? Thanks in advance.
Your UK address - sold my flat but do I put this address anyway?
Are you ordinarily resident in the UK - I'm not - this might automatically disqualify me?
How long do you intend to stay abroad - truthfully I don't intend to go back to live in the UK; again, that might automatically disqualify me from this top-up scheme?
Your UK address - sold my flat but do I put this address anyway?
Are you ordinarily resident in the UK - I'm not - this might automatically disqualify me?
How long do you intend to stay abroad - truthfully I don't intend to go back to live in the UK; again, that might automatically disqualify me from this top-up scheme?
If this was your last UK address, yes.
Nope
This is based on whether or not you were ordinarily resident just before you left. So you answer accordingly.
Nope, you can put indefinite.
Search for NI38 leaflet also and review that document first.
Rats. I just sent my letter off and for much the same reasons as @emerald_e had scored through the UK address and said I wasn't ordinarily resident. And that was after reading the guidance!
Hopefully the cover letter will help. I guess I'll find out in six months or so
Hopefully the cover letter will help. I guess I'll find out in six months or so
@DannyBoyD thanks so much for replying, and for flagging this scheme to all of us in the first place!
Did you keep a copy of the form?Rats. I just sent my letter off and for much the same reasons as @emerald_e had scored through the UK address and said I wasn't ordinarily resident. And that was after reading the guidance!
Hopefully the cover letter will help. I guess I'll find out in six months or so
I think I would complete another form correctly and send it again with a cover letter saying you had misread the question.
I'll put the link to NI38 into the main post.
The website assumes you stopped working after leaving UK and hence Class 3. You need to send a covering letter explaining why Class 2.
As far as I know, you have to wait until they contact you to make the payment.
One of the coonditions of Class 2 is "have been employed in the UK up until immediately before they left".
I assume a month or so of not being employed in UK whilst getting ready to move back to Ireland won't disqualify someone from claiming Class 2. Does anyone have any more information on this?
Also, what happens if you pass away before retitrement. Are all benefits (class 2 or class 3) lost or do they pass to your spouse/ into your estate?
I can find nothing that says the NI Contributions will be credited to your spouse, in the event of your untimely death.
I was rejected on my first application because I said I ceased self employment in April but only left the UK in August. This was over 20 years ago and I got my dates wrong. Have reapplied with some evidence that I actually worked up to that July. Fingers crossed the evidence is enough.
NoRegretsCoyote
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I don't think they seek to verify this to be honest and take it largely on the basis of self-declaration.
Your credits and pension die when you do. There is nothing for a spouse.
Class 2 and Class 3 benefits are only bad value if you die before 70, but the vast majority of people will live beyond it.
Thanks to all for this but I'm still unclear on the Class 2/Class 3 - worked full time in UK util I left Aug/Sept 2002 returned to Ireland to full time education whilst working part-time for 6 months in private sector then full-time in semi-state public sector for a while. The website says Class 3, Class 2 appears to be for self-employed is tis correct? How do you actually pay the contributions?
NoRegretsCoyote
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In your case on form CF83 I would tick "employed" for the date when you left the UK (Question 13) and mention that you started employment abroad the following day (Question 19).
Your full-time education is irrelevant once you had any employment in Ireland. This should qualify you for Class 2.
No. Class 2 is for person who worked in UK before leaving & then worked abroad
See Key post.
Class 2 is not just for self employed. If you worked full time in the Uk, before moving and working here, then it will likely be assessed as Class 2. I'm just off the phone with them today, trying to understand how to make the payments. The Gov.uk website mentions that you need a HRMC payment reference number (18 digit) in order to be able to pay. When I got through on the phone today (after 55 mins), the guy explained that the gov.uk website defaults to Class 3, but when your CF38 form is received and assessed and you meet the Class 2 criteria, then you will be given the details of the lower amounts, and your 18 digit HRMC reference number. My form was only posted last week, so he advised me to call back in 3 weeks to check that it was received. Crucially, he said that once you make contact, then "the July 31st clock stops" and it can all be sorted out in the weeks and months after the deadline. Even though there is a long backlog in assessing of cases, there is a system to acknowledge receipt of your CF38 form. At the end of the call he said he would put a note on my Nat. Ins Account to acknowledge that I made contact today, and again he said the simple act of doing that would "stop the clock" on the July deadline. Once I call back in 2-3 weeks to ensure the letter was delivered, the next thing to happen would be that they will write back to me confirming which years I can pay for, and how much I can pay. He said that when I call about the letter ( in 3 weeks time) that I should ask them what the current time backlog is for processing of CF38 forms.
NoRegretsCoyote
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Maybe this is one for another thread, but it's socially optimal if everyone doesn't call them so much as it leaves them less resources to process the requests!
Once the request has been received before the July deadline they will have to honour it. I've been saying this on several threads for a long time and nothing anyone has heard on the phone has contradicted it.
Thanks so much for this information. Do you have the number handy that you got through on?
See key post for link to relevant website.