New pension in 2016

[the mad woman]

Hi have been reading about this and it said how much you get will depend on if you have opted in or out what scheme are we on any ideas please

[TrueBlueTerrier]

https://www.gov.uk/new-state-pension/overview" onclick="window.open(this.href);return false; The new State Pension

You’re contracted out if the National Insurance contributions line has the letter D or N next to it. You’re not contracted out if it has a letter A.

[RobertT]

Hi have been reading about this and it said how much you get will depend on if you have opted in or out what scheme are we on any ideas please

The new state pension is due to come into effect in 2016. Everyone of employment age in the country is potentially in both the existing one and the new one as long as they earn enough to pay NI or receive certain state benefits.

https://www.gov.uk/new-state-pension/overview The new State Pension. You’re contracted out if the National Insurance contributions line has the letter D or N next to it. You’re not contracted out if it has a letter A.

I think you’re referring to the State Second Pension / SERPS here, which is different from the main state pension. With S2P people gained more state pension entitlement depending on how much NI they actually paid, so high earners tended to get more S2P.
People who are members of salary based pension schemes(final salary/average salary) don’t build up any S2P while they’re employed by the company providing that type of pension. They build up more FS / AS pension instead. They also pay less NI, although this rebate and contracting out for FS schemes is due to stop when the new state pension kicks in.

[bogstandard]

well thats cleared that up then

[heapsy]

Nobody is contracted out any more as far as I know. There was an increase to National Insurance contributions to reflect this a short time ago. This includes our pension. The losers will be the much higher paid who will no longer benefit from their over sized payments due to over sized pay packets. The new pension will provide a bigger pension for those on lower pay and shorter hours contracts.

[RobertT]

Nobody is contracted out any more as far as I know. There was an increase to National Insurance contributions to reflect this a short time ago. This includes our pension.

Contracting out for defined contribution schemes ended in April 2012.
The abolition of contracting out for final salary schemes doesn't come into effect until 2016, so section A, B & C members still pay 1.6% less in NI. More info:
http://www.dwf.co.uk/news/legal-updates ... it-schemes" onclick="window.open(this.href);return false;

The losers will be the much higher paid who will no longer benefit from their over sized payments due to over sized pay packets. The new pension will provide a bigger pension for those on lower pay and shorter hours contracts.

Losers will also include many workers who spent a long time contracted out:
http://www.thisismoney.co.uk/money/pens ... cting.html" onclick="window.open(this.href);return false;