NI increase for Royal Mail employees

[belle smith]

Was just watching the news and apparently the increase in state pension to £140 per week which is being proposed by the goverment.
Is being paid for by ending SERPS (state second pension) and contracting out from the SERPS.

Just to be clear we are contracted out of SERPS, ending this means we will have to pay increased National Insurance contrabutions.

[RobertT]

To put some figures to belle's post:

The NI rate for everybody is going up tomorrow(6th April) from 11% to 12%, the contracted out rebate will still be 1.6%.
So our rate will go up from 9.4% to 10.4% and then to 12% in 2015/16 when the new state pension scheme kicks in.

[genesis]

Does this mean the section c members who retire at 60 will not get the lower earnings related supplement( payable until old age pension age) ?

[UnhappyGremlin]

So, the coalition Government has put the personal tax allowance up quite a bit with one hand.
And are recouping (at least part) with an increase in NI contributions.

[Pinky 1]

This thread is three years old mind ........

[RobertT]

Does this mean the section c members who retire at 60 will not get the lower earnings related supplement( payable until old age pension age) ?

Not as far as I’m aware.

So, the coalition Government has put the personal tax allowance up quite a bit with one hand.
And are recouping (at least part) with an increase in NI contributions.

It brings final salary pension scheme members in line with everyone else in the country in terms of NI payments. Anyone who has accrued contracted out benefits will still benefit from them .

This thread is three years old mind ........

And as some people don’t know exactly what’s going on, is still relevant.

[genesis]

Yes very relevant . The pension policy institute ( available online) has indicated it would ike to see changes to pension lump sums Taxing anything over £36000,at 30%.
Or limiting lump sums to a maximum of 20% which is currently at 25%. There is also a lot of information on their website about the single tier pension starting in 2016 .

[toomuchcoke]

So, the coalition Government has put the personal tax allowance up quite a bit with one hand.
And are recouping (at least part) with an increase in NI contributions.

Nothing new there ... When Gordon Brown was Chancellor he reduced income tax from 23% to 22% one year, and then increased NI from 10% to 11% the following year. He also made that 1% (which is now 2% of course) continue to apply above the Upper Earnings Limit. Overall that probably resulted in an increase in government revenue.