Key Post UK State Pension - Make voluntary contributions to qualify for UK pension on top of Irish pension

A small bit of additional info I recall from one conversation, was that the Gov realised, when introducing the New State Pension in 2016, that some individuals may not have been best advised on the concept of “contracting out”.
Being able to make additional NICs to compensate for being contracted out (and paying less in NICs) was a concession of sorts on the Government’s part.
 
Lisgoold said:
That's correct. There's plenty of people who were contracted out of S2P, and before that SERPS, who can end up with well over 40 years of contributions, and yet still be short of reaching the current figure of £203.

Likewise, for those , like me, who were never contracted out, that figure can be reached with 31 years of contributions.

People who were contracted out, paid a lower rate of National Insurance.

S2P replaced SERPS in 2002. Neither now exist, since the New state pension was introduced in 2016. This is a much simpler system, where you need a straightforward 35 years to achieve full New state pension. Note, that figure of 35 years only applies to people who STARTED paying National Insurance since 2016.

Anyone with employment history from before 2016, is on a hybrid system of the old, and New state pension. This can be quite complicated, so it's important to check your own personal forecast if at all possible.
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This is a good point that is extremely complex. I’ll dig out my old G60 examination notes which is the old specialist U.K. pension paper and which covers the old GMP, Serps etc in some detail and if I have time I’ll set out a summary of the key transitional arrangements.
 
Marc said:
This is a good point that is extremely complex...summary of the key transitional arrangements.
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Could I caution against getting too detailed.

If a post is too long & complex a lot of folks will skim over it.

I think the point is well made that everyone would be well advised to check their own pension position further down the line; and in the meantime number 1 priority is to get the application in before the deadline of July.
 
Lisgoold said:
S2P replaced SERPS in 2002. Neither now exist, since the New state pension was introduced in 2016. This is a much simpler system, where you need a straightforward 35 years to achieve full New state pension. Note, that figure of 35 years only applies to people who STARTED paying National Insurance since 2016.
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When was this policy of automatically crediting 3 years contributions ended, I worked for 2 years prior to 2002, years 2000 and 2001 but was not credited with this automatic 3 years, however it did say at the bottom of the letter :

"You do not appear to have paid the 3 years continuous residence in the UK and our records show that you not paid 3years of UK National Insurance contributions

If you have resided and worked in another EEA country or in Turkey, this can count towards the residence condition. In order for us to consider any periods of residence or employment in another EEA country we would need a record of this."

Maybe I just need my prsi record following my return to Ireland?
 
joe sod said:
When was this policy of automatically crediting 3 years contributions ended, I worked for 2 years prior to 2002, years 2000 and 2001 but was not credited with this automatic 3 years, however it did say at the bottom of the letter :

"You do not appear to have paid the 3 years continuous residence in the UK and our records show that you not paid 3years of UK National Insurance contributions

If you have resided and worked in another EEA country or in Turkey, this can count towards the residence condition. In order for us to consider any periods of residence or employment in another EEA country we would need a record of this."

Maybe I just need my prsi record following my return to Ireland?
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I think it ended in 2010, but not 100% sure. Some people left school at 16 and started work , paying NI.
The ones who stayed at school for an extra couple of years to do A levels were missing out on the credited NI contributions. So they were awarded them anyway, to try and make it fairer. In other words, everyone got them for the years they turned 16, 17, and 18 whether they were working or not.
But that ended , I think in 2010, when I think the leaving age was moved to 18.
 
Spent a while today trying to find the Future Pensions number to ring to answer a few queries as I will have a hybrid pension with contributions from the older type pension and the newer type. The number on the website is only if you are ringing from the UK.
For anyone looking for the number to ring FROM IRELAND it is 00-44-191-218-3600.

Contact the Future Pension Centre

Future Pension Centre contact details - for pension forecasts, statements, advice and enquiries.
www.gov.uk www.gov.uk
Apologies if it is already in the key post and I missed it. If not, maybe it would be helpful to add it? Thankyou!!
 
Marc said:
This is a good point that is extremely complex. I’ll dig out my old G60 examination notes which is the old specialist U.K. pension paper and which covers the old GMP, Serps etc in some detail and if I have time I’ll set out a summary of the key transitional arrangements.
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Probably the best way to illustrate this is to use me as a real case study.

This is my State Pension forecast from here https://www.tax.service.gov.uk/check-your-state-pension/account

1681987743381.png




As you can see from the projection I currently have an entitlement to £187.32 per week which I can increase to £203.85 per week if I pay another 3 years contributions before I am 66.


Now, when I checked my NI Contribution record I was told that I had 34 years contributions and therefore I might easily assume that I only need to make 1 more payment to get the full pension.

1681987904898.png


So it is important to check both the State Pension forecast AND your contribution record.

In all of the years of employment in the UK I was contracted out of SERPS by way of an occupational pension (DB and COMPS) which explains the difference between my contribution record and the number of years needed.
 
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NoRegretsCoyote said:
@DannyBoyD

Excellent work on the key post!

I would suggest a few edits:
  1. Put the link to the UK government website up higher;
  2. Maybe make clearer that voluntary class 2 NI contributions are literally the best investment return in existence if you are eligible - I modelled it once and it's something like a guaranteed 10% annual return. Voluntary NICs should be prioritised over absolutely every other type of saving;
  3. I started a thread on this and there no payment for a dependent spouse, see this AAM thread here you could link to it.
  4. You may be able to pay the more expensive Class 3 contributions if you have less than three years. I only ever worked 10 months in the UK over two tax years but they are allowing me make Class 3 contributions, see this AAM thread https://www.askaboutmoney.com/threads/credited-uk-ni-contributions-as-a-teenager-why.216240/post-1663150 (here). I wasn't expecting this (and don't really know why I am eligible) but for the price of a stamp anyone with any UK employment history should make a request.
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cant find your links........i worked for 2 years across 3 tax years, according to their website u have 3 full years contributions, as attached......will i be able to claim Class2? im 54, so would buy back the 16 years and then continue to contribute.
Anything i should put in a cover letter?
appreciate any advise.
 

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Regarding the question asked above about a person aged 77:
I see on the National Insurance website that a man born before 5/4/1951 or a woman born before 5/4/1953 can only make contributions going back 6 years maximum. Eligible persons born after those dates cannot make contributions for the earlier years 2006-2016.
It seems also that contributions can't be made in respect of years after state pension age.
So say a man born on 5/4/1951 reached UK state pension age on 5/4/2016, which is more than 6 years ago, so it seems no voluntary contributions would be possible in that case. A woman wth the same birth date would have reached state pension age in 2012, so is in the same situation.
 
Has anyone been able to register for a Gateway ID if HMRC have your maiden name but passport is in married name. To change the system details, I can apply by logging in with my gateway ID, so it’s circular. I see some people had some luck verifying after a few goes but I think the issue for me is that my NI/HMRC surname and my passport surname are different. I tried their online virtual agent and it didn’t have an answer. I’m also worried the phone line will be expensive, so wondering if anyone has been through this scenario and has some advice. Thanks in advance! ☺️
 
Penusia said:
Has anyone been able to register for a Gateway ID if HMRC have your maiden name but passport is in married name. To change the system details, I can apply by logging in with my gateway ID, so it’s circular. I see some people had some luck verifying after a few goes but I think the issue for me is that my NI/HMRC surname and my passport surname are different. I tried their online virtual agent and it didn’t have an answer. I’m also worried the phone line will be expensive, so wondering if anyone has been through this scenario and has some advice. Thanks in advance! ☺️
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I have no advice but I am having the exact same issue. I am hoping HMRC may update my record once they get around to reviewing my CF83 form. Unfortunately it looks like it will be months before they get to my paperwork so it won’t be a quick fix if they do update my record.
 
Penusia said:
Has anyone been able to register for a Gateway ID if HMRC have your maiden name but passport is in married name. To change the system details, I can apply by logging in with my gateway ID, so it’s circular. I see some people had some luck verifying after a few goes but I think the issue for me is that my NI/HMRC surname and my passport surname are different. I tried their online virtual agent and it didn’t have an answer. I’m also worried the phone line will be expensive, so wondering if anyone has been through this scenario and has some advice. Thanks in advance! ☺️
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My wife rang the HMRC helpline and they changed her name on the phone, once she gave her NI number and dob.
She was then able to register online, using the face recognition app and her Irish passport.
She did have to wait about 45 minutes on the line and it cost about 6 euros on the phone bill. It might be the simplest way to do it. Once you get through it seems to be fairly straight forward. She was able to register on the Gateway within a few hours.
 
I thought I was clued in to these matters, but this one has completely passed me by.

I worked in UK from 2001 to 2005 and presumed would get nothing at retirement in terms of state benefit as I'll have built up full Irish state pension by that point (which I presumed would override any UK entitlement).

Have registered on HMRC site (very easy!) and it says I have 8 years paid.

Printing the form and sending it off (by recorded delivery!) immediately. But looks like a c.€1000 payment now and c.€200 yearly payment for next 21 years until I hit 67 is going to payout roughly €15k per year for a €5k outlay!

Mind blowing, and complete gamechanger for my retirement planning. Although, recognise it could be taken away again at the stroke of a pen.

This all seems like complete madness by the UK government....but going by their track record, hardly without precedent!

Thank you everyone on this thread for such excellent insights.
 
Thanks DannyBoyD and all who have contributed to this thread. We got the details for payment for my husband back, I sent it in November. Most years were at class 2 but a few where he was out of work during the recession were at class 3.
I rang Newcastle this morning, phone answered immediately ( they are quite today apparently) I got a really helpful lady who talked me through payment through international bank transfer. She gave me IBAN and BIC and account name and i had to put in reference which was NI Number followed by IC and surname. I completed it today in the bank, they wouldn't process without bank address and account address but I could google both... so fingers crossed. She took account of the years I was paying on the account.
I sent mine a week earlier and I haven't heard back yet but she said it should be reviewed within the month and to call back to check. I intend to call back next week to ensure transfer went through.
 
Anyone have experience in determining how long it takes for them to confirm eligibility and which class you’re entitled to once the CF83 has been delivered?
I assume that’s identified on the national insurance site or how do they get in touch?
 
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