Preserved Pension Reductions


Lantern Swinger
Greenie said:
Think you'll find that if you did the full 22 years the non payment of insurance contribution evened its self out with the RN pension

RN pension is paid seperately and usually gets used for any tax due to be paid . The tax man cannot take any tax from OAP related payments .

Greenie I do not think that is quite correct they just adjust your tax code i.e. lower it so you have less tax relief against you pension.
That is what they did to me when I got my OAP


Lantern Swinger
Greenie: I served for 20 years and the NI payments started at 16 years of age (1/3 pw) and continued until I had completed 44 yeays employment. The DWP office said anyfurther contributions would not coun. I took the hint and retired TM
My Service time --I did 27 years came out 1985 Joined as a junior
so basicallydid nearer 30 years RN time
I had a insurance number at age 13

Worked 1985 till 2004 and like Sulzer was told I need not sign on 'cos my Insurance contributions were above the 44 yr period

At age 65 the non taxable allowance is £9,490 so you would be allowed to
recieve approx £200 pw and pay no tax . However My state paid OAP benefits add up to more than £9,490 pa . The amount over £9490 becomes liable for tax
The tax due is passed to the RN Pension paying authority and added to the
amount that is due to be deducted as a tax payment from my RN pension
thus giving me a final tax code

ie tax is basically 0ne fifth [20%] of all income over and above your personal tax free allowance
If your income exceeds £24,000pa then you begin to pay more tax . So
anyone thinking of getting a job or staying in work after 65 beware the tax rules




War Hero
I had a reduction of my Service pension at 65 but I was told I had received more than the basic State pension as a result.


Lantern Swinger
I left the mob in 89 after 27 years then joined Royal Mail, took their pension at 60, then on reaching 65 it was reduced by almost 40%. This appears to be the norm in all final salary pension schemes. Of course at 65 the state pension kicks in, but because both pusser and RM were contracted out of SERPS my state pension was reduced by about £45 a week. Such is life! Mind you with 2 indexed linked pensions I am much better off than those with a full state pension. I agree with Greenie, I still work part time at 66 but if I earn more than £25400 (ish) this year you start paying almost double the tax, so I do 1 1/2 days a week but take a month off over crimbo and a month in the summer. Works well all round.
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