Navy Net - Royal Navy Community

This is a sample guest message. Register a free account today to become a member! Once signed in, you'll be able to participate on this site by adding your own topics and posts, as well as connect with other members through your own private inbox!

Pensions. Are we being shafted?

SONAR-BENDER

War Hero
I found this on another site, so cannot vouch for the veracity. If true, then it is a wee bit worrying - to say the least.

For all Service Personnel and Civil Servants. This was posted in one of the forces groups yesterday. Please read as it might affect you.

'Today, I contacted the Royal British Legion re the recent changes to our National Insurance contributions. I was told, co-incidentally, that the guy I spoke to had received an identical call from an ex-Navy guy earlier today. I was also told that the information would be passed to the Campaign Team, but what they'll do about it wasn't clear.
So, if you're not sure what I'm talking about, here's the deal . .
From last April, changes to the NI rules, mean that the NI contributions we paid via our wages, for the duration of our service, are now classed as 'opted-out' payments. As a result, we are not entitled to a full state pension, at pensionable age.
I will lose £25 per week and, my friend who served 40 yrs non-commissioned/commissioned loses £50pw.
When I went onto the DWP website, it stated that I had 38 qualifying years. What the site did not say was that, as of April 2016, 16 of those qualifying years (my service) are now classed as 'opted-out' due to the fact that we (allegedly) paid a lower rate of NI.
This also affects Civil Servants - a double whammy for some of you.
It is possible to back-pay some NI contributions, but you're only allowed to do so for a certain number of years. It's too late for me to make up the contributions that, in my case, are 'opted-out' (77-93).
If you're already claiming your state pension, this will not affect you.
It's clear that this new rule has not been widely advertised and I hope that the RBL pick it up and campaign to get that underhand decision reversed.
Please share this information with all the serving and ex-serving people you know or, indeed, raise the issue with your MP.'
 

pompeyexpat

War Hero
Looking at the Gov website, this appears to be the case https://www.gov.uk/new-state-pension/youve-been-in-a-workplace-personal-or-stakeholder-pension

Ironically, someone on benefits all their life will have had their stamps covered, and get the full pension.

I guess the reasoning is that you were accruing a better work based pension at the time, but still feels like we're getting screwed as we still paid NI tax!
I've just seen SB's quoted post on Faceache and was wondering how to check its accuracy, so thanks for saving me the effort.

I knew we used to pay reduced NI contributions, (I didn't realise until it was pointed out to me a couple of weeks ago that we were now paying full contributions), but I'd always assumed that was because our healthcare didn't come through the NHS. I certainly didn't realise it was coming off my state pension.
 

vauxhall

Lantern Swinger
I found this on another site, so cannot vouch for the veracity. If true, then it is a wee bit worrying - to say the least.

For all Service Personnel and Civil Servants. This was posted in one of the forces groups yesterday. Please read as it might affect you.

'Today, I contacted the Royal British Legion re the recent changes to our National Insurance contributions. I was told, co-incidentally, that the guy I spoke to had received an identical call from an ex-Navy guy earlier today. I was also told that the information would be passed to the Campaign Team, but what they'll do about it wasn't clear.
So, if you're not sure what I'm talking about, here's the deal . .
From last April, changes to the NI rules, mean that the NI contributions we paid via our wages, for the duration of our service, are now classed as 'opted-out' payments. As a result, we are not entitled to a full state pension, at pensionable age.
I will lose £25 per week and, my friend who served 40 yrs non-commissioned/commissioned loses £50pw.
When I went onto the DWP website, it stated that I had 38 qualifying years. What the site did not say was that, as of April 2016, 16 of those qualifying years (my service) are now classed as 'opted-out' due to the fact that we (allegedly) paid a lower rate of NI.
This also affects Civil Servants - a double whammy for some of you.
It is possible to back-pay some NI contributions, but you're only allowed to do so for a certain number of years. It's too late for me to make up the contributions that, in my case, are 'opted-out' (77-93).
If you're already claiming your state pension, this will not affect you.
It's clear that this new rule has not been widely advertised and I hope that the RBL pick it up and campaign to get that underhand decision reversed.
Please share this information with all the serving and ex-serving people you know or, indeed, raise the issue with your MP.'

This is from the FPS website: http://ow.ly/Pv4O30amS6X
 

babygravy

Lantern Swinger
The other thing to consider is breaks in your NI contributions.

Potentially any contributions made before your service time may be lost.

Your service time could be classed as a break in contributions.
 

BillyNoMates

War Hero
The last quote I had using DWP number cruncher was as follows:-

(Quote)

You can get your state pension on 6 May 2020. Your forecast is
£140.46 a week. £610.75 a month, £7,329 a year.

...is not a guarantee and is based on the current law....does not include any increase
due to inflation.
You need to continue to contribute to N.I. to reach your forecast.

(Then)

Estimate based on your N.I. record up to 5th April 2016.

£122.67 per week


Forecast if you contribute until 5th April 2020.
£140.46 a week

£140.46 is the most you can get.

After State Pension Age, 6th May 2020, you no longer pay N.I. contributions.

(Unquote)

Looks like I am also being shat upon as I presume (having printed off a complete
record of ALL my N.I. contributions up to present day) that I will end up with
the lower rate.

Marvellous.

Billy.
 

babygravy

Lantern Swinger
You can actually check how many full years NI contributions are logged on the Gov database:

https://www.gov.uk/check-national-insurance-record

You will need to have/set-up a Government Gateway account first.

As vauxhall said, there is nothing new or sneaky that has been introduced here, however many current and ex-service members are not aware of this.

Perhaps this should be highlighted more when joining up etc?
 

BillyNoMates

War Hero
It would seem that the pension forecast readjustment (re: lower N.I. contributions)
is not necessarily correct.

"To receive a full Basic State Pension, you need to have earned 30 years’ worth of NIC State Pension credits. These credits are usually gained through the NICs made on salaries paid."

Therefore - if you have done your time in the services, retired from that and gone on to another career,
you should have made up the difference and hit 30 years worth of N.I. contributions and should receive
exactly what you're entitled to when you eventually reach the age of crustiness.

I've been contributing in this (2nd) career since 1994 and I am officially an old fart in 2020. Does that
mean that after 26 years in this job I'll still be 4 years behind full N.I. contributions, and will 22 years
of "opt out" lower N.I. contributions that were paid when I was in the RN just simply cease to exist
and not be taken into account?

My brain hurts.

Billy.
 

Sumo

War Hero
Billy OK for those that did not become Civil Servants, they be well shafted.
And obviously all those that took 2OE and FTRS may not smile to well either
 

BillyNoMates

War Hero
I'll try and survive on three pensions. If that's not possible then I'll
get another job as a miserable bastard on the Main Gate at B&Q
in Tavistock Road.
 

Sumo

War Hero
Do not know yet, all the proof of ID questions, all relevant documents at home?
My pension said £155 per week but after this info I need to check again.
It also said I could not add any more contributions?
 

Sumo

War Hero
HM Revenue & Customs
Sorry, we’re experiencing technical difficulties

Please try again in a few minutes.

OK who broke it, all my proof of ID docs to hand and its broken:(
 

WreckerL

War Hero
Super Moderator
HM Revenue & Customs
Sorry, we’re experiencing technical difficulties

Please try again in a few minutes.

OK who broke it, all my proof of ID docs to hand and its broken:(
That's because you're asking questions they don't want to answer, type in "I've just inherited a mega amount of money, how much do you want in tax" and you'll get a response in nanoseconds.

They use the same computer systems as pusser does, it's a Cray supercomputer to take the money off you but an old 486 laptop with a dodgy battery when they owe you a rebate ;)
 

Sumo

War Hero
https://www.gov.uk/government/publications/state-pension-fact-sheets/contracting-out-and-why-we-may-have-included-a-contracted-out-pension-equivalent-cope-amount-when-you-used-the-online-service

I checked mine

£155.71 is the most you can get

You cannot improve your forecast any more.

If you’re working you may still need to pay National Insurance contributions until 27 August 2024 as they fund other state benefits and the NHS.

And back in 75-76 I paid

Full year Hide 1975-76 details You have contributions from Paid employment: £58.96

National Insurance credits: 50 weeks

When I checked my NI contributions it says full year for all years no mention of opting out?

Looks like as my first 2 jobs were final salary pensions after I left the mob I was probably contracted out until 2011
 

BillyNoMates

War Hero
Up to the end of 2016, I have paid

£54,727.14p in N.I.

If that isn't enough to qualify me for an old twats pension at the correct rate then
bollocks to 'em and I shall start a cottage industry growing weed in the loft so I can retire and have a lifestyle that I have thoroughly earned.
 

Sumo

War Hero
Up to the end of 2016, I have paid

£54,727.14p in N.I.

If that isn't enough to qualify me for an old twats pension at the correct rate then
bollocks to 'em and I shall start a cottage industry growing weed in the loft so I can retire and have a lifestyle that I have thoroughly earned.

No Billy that’s your contribution to my pension, cheers easy?
 
Thread starter Similar threads Forum Replies Date
MoD_RSS Environment Agency chair addresses World Pensions Summit MoD News 0
MoD_RSS FCA climate risk plans welcomed by Pensions Minister MoD News 0
MoD_RSS GAD’s key role in pensions consultation MoD News 0
MoD_RSS Department for Work and Pensions appoints new Lead Non-Executive Director MoD News 0
MoD_RSS Public service pensions update: a GAD technical bulletin MoD News 0
MoD_RSS Department for Work and Pensions appoints two new Non-Executive Board Members MoD News 0
MoD_RSS Helping develop an approach around senior clinicians’ pensions MoD News 0
MoD_RSS The Pensions Regulator moves email and web portal to the cloud MoD News 0
MoD_RSS Suspension of War Pensions and Armed Forces Compensation Scheme Medical Examinations and Assessments MoD News 0
MoD_RSS Senior clinicians' pensions: letters between DHSC and NHS England MoD News 0
vauxhall Pensions Roadshows 4-7 Nov Finance & Pensions 0
MoD_RSS Brexit and pensions uprating MoD News 0
MoD_RSS Senior clinicians’ pensions: government asks for views on new proposals MoD News 0
MoD_RSS Interim chair of The Pensions Ombudsman announced MoD News 0
MoD_RSS Interim head of pensions watchdog appointed MoD News 0
MoD_RSS NHS pensions for senior clinicians: new changes announced to improve care MoD News 0
MoD_RSS Changes to NHS pensions for senior clinicians: have your say MoD News 0
vauxhall Thinking of Emigrating? What About Your Pensions? Finance & Pensions 3
vauxhall Firefighters Union Wins Landmark Pensions Case Finance & Pensions 0
O sprog to the Forum - Doe we still get our pensions at 55 ? Finance & Pensions 7
vauxhall Top NHS doctors to be given more flexible pensions Finance & Pensions 0
MoD_RSS News story: Top NHS doctors to be given more flexible pensions MoD News 0
Sumo Pensions reduction Finance & Pensions 3
vauxhall Annual Allowance and NHS Pensions Update Finance & Pensions 0
vauxhall NHS Chiefs Hold Emergency Talks Over Pensions Tax Crisis Finance & Pensions 0
vauxhall Widows' pensions Finance & Pensions 0
MoD_RSS Press release: Seven years in jail for bosses who recklessly risk pensions MoD News 0
vauxhall Public Sector Pensions Court Ruling Finance & Pensions 0
vauxhall Firefighters Pensions Finance & Pensions 0
MoD_RSS Press release: Local government workers to receive increased pensions protections MoD News 0
MoD_RSS News story: Pensions cold-calling banned MoD News 0
MoD_RSS Press release: Pensions Ombudsman reappointed MoD News 0
vauxhall Pensions are a Complicated Business Finance & Pensions 0
MoD_RSS Speech: Exchequer Secretary speech: Pensions and Lifetime Savings Association Trustee Conference MoD News 0
MoD_RSS Press release: Pensions dashboards to enable more informed retirement planning MoD News 0
MoD_RSS Statement to Parliament: The Secretary of State for Work and Pensions has made a statement to the House today. MoD News 0
MoD_RSS Speech: Minister for Pensions and Financial Inclusion gives keynote speech at the PLSA Conference 2018 MoD News 0
vauxhall Pensions and the Budget Finance & Pensions 0
vauxhall Pensions Awareness Finance & Pensions 0
vauxhall Pensions Awareness Week Finance & Pensions 0
vauxhall Improving AFPS 15 pensions Finance & Pensions 0
D MOD and War Pensions The Quarterdeck 1
vauxhall Claiming spouse/partner pensions Finance & Pensions 0
vauxhall Just a little pensions question Finance & Pensions 0
vauxhall FPS Pensions Secretary talks to BFBS Finance & Pensions 0
E Pensions and Commutation and Index Linking and 55.... Finance & Pensions 19
vauxhall Another pensions success Finance & Pensions 1
K Pre 1975 service for pensions Finance & Pensions 8
MoD_RSS News story: 2016 war pensions and allowance rates MoD News 1
MoD_RSS News story: Armed forces pensions for life MoD News 0
Similar threads


















































Top