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
 
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