State Pensions
Chances are, you're already receiving the basic State Pension. The amount you are receiving depends on how many qualifying years you built up while you were working. Qualifying years are the years in which you paid or were treated as paying National Insurance contributions. In certain circumstances, you may have been credited with National Insurance contributions even if you were unable to do paid work.
You may also be getting additional State Pension. This is the earnings-related element of State Pension, paid on top of your basic State Pension. You may know this better as SERPS (the State Earnings-Related Pension Scheme). SERPS was replaced by the State Second Pension from April 2002. The amount you receive from this pension is based on your record of National Insurance contributions and your level of earnings when you were an employee.
What if there are gaps in my National Insurance contributions?
Some people who reached State Pension age after 6 April 1998 may be unaware that they could have gaps in their National Insurance record between April 1996 and March 2002. These gaps may have had an effect on their entitlement to state benefits including the basic State Pension
A small number of these people may be able to improve their basic State Pension entitlement by paying voluntary National Insurance contributions now that HM Revenue & Customs has extended the deadline for doing so. Visit HM Revenue & Customs website to find out about voluntary National Insurance contributions
You will not be one of the customers affected if:
- you already receive the full basic State Pension (£95.25 at April 2009)
- you reached State Pension age before 6 April 1998
You will have been notified in writing if our records and those of HM Revenue & Customs showed that you may be affected.
The letter would have advised you:
- whether you have a gap in your National Insurance record, which you can fill by paying voluntary contributions
- how the payment of voluntary contributions will affect your State Pension
- the options available to you for paying these voluntary contributions
- how much you can pay and when you need to pay by
There is no obligation for you to pay these voluntary contributions, but we want to make sure you have the information you need to be able to make your decision.
If you think you may be affected and you have not received a letter from The Pension Service you should contact your nearest pension centre or social security office for advice
Find out more about voluntary National Insurance contributions on HM Revenue & Customs website
As the Government plans to reduce the number of qualifying years a person needs to qualify for a full basic State Pension for people reaching State Pension age on or after 6 April 2010, people may want to consider carefully whether to delay paying voluntary Class 3 National Insurance contributions until this has become law.
If you reach State Pension age between 6 April 2008 and 5 April 2015 you may be able to pay additional voluntary Class 3 National Insurance contributions for up to six years from 6 April 1975 to cover years that do not currently count towards your basic State Pension.
For more information on this important change please see:
State Pension - Paying Class 3 National Insurance contributions
Additional Voluntary National Insurance contribution factsheets
What if I'm not receiving any State Pension?
If you are not receiving any State Pension because you think you do not have enough qualifying years or you think you may not be eligible for some other reason, you should still claim. You may be entitled to State Pension and you could be missing out. You can claim State Pension over the phone, this is a quicker process and will help to ensure that you receive you first payment on time. The number to ring is 0800 731 7898 or alternative Welsh and textphone versions. During the call you will be advised of other benefits / products e.g. Pension Credit, Housing Benefit, Council Tax Benefit which you may be entitled to.
How to contact The Pension Service
More about State pensions
You can read and print or order a copy of State pensions - Your guide from our resource centre.
Will the Government's proposals for reform affect me?
If you are already getting State Pension or have reached State Pension
age and have put off claiming, the basis on which your pension is calculated
will not change.
Find out more about Pensions
reform
Pensions Tax Simplification
From 6 April 2006 a new tax regime for pensions, called Pensions Tax Simplification, was introduced. Find out more about Pensions Tax Simplification on HM Revenue & Customs website
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