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State Pension
updated 09/04/08 The two main categories of state pension are contributory and are known as Category A and B pensions. Category A pensions are normally based on your own National Insurance contribution record. Category B pensions are payable only to married women, widows and some widowers and surviving civil partners and are based on their spouse/civil partners contribution record. Civil partners have many of the same state pension rights as spouses. Category D pensions are non-contributory and only payable to people aged 80 or over and who meet the residence conditions. All categories of state pension are taxable. WHEN CAN YOU GET A STATE PENSION? You can get a state pension if you've reached state pension age (currently 60 for women, 65 for men), you meet the contribution conditions and have made a claim. You can claim at any time from 4 months before state pension age. Normally, for Category A pensions, you yourself must have met the contribution conditions. You can receive a reduced-rate basic state pension if you have met the conditions to give you a state pension of at least 25% of the standard rate, i.e. you must have paid or have been credited with enough contributions to make at least a quarter of the years in your 'working life' count as 'qualifying years'. For Category B pensions, your spouse/civil partner must have met these contribution conditions. If you do not draw your state pension until you reach 65 (women) or 70 (men) or you give up your state pension for a period of at least 7 weeks you may get extra state pension when you do start to claim. Once you reach the age of 65 (women) or 70 (men) you cannot earn any extra state pension. WORKING AND THE STATE PENSION Any earnings you receive after reaching state pension age do not reduce your state pension. If you carry on working and do not draw your pension you may earn extra state pension or a one-off lump sum. If you have already claimed your state pension, you can give up your claim in order to earn extra state pension. You can only give up a state pension once, and cannot backdate that choice. There is an earnings limit for an increase for an adult dependant. CONTRIBUTORY STATE PENSIONS Category A Pension This is normally based on your own National Insurance (NI) contribution record. But some widows, widowers and surviving Civil Partners can get a state pension even if they have not met the contribution conditions, as long as they were getting incapacity benefit (IB) just before reaching state pension age. Other widows, widowers, surviving civil partners, divorced people and those whose civil partnership has dissolved may be able to use the contribution record of their former spouse to help them qualify (see leaflets NP45 and NP46). If you have met the contribution conditions in full, you can receive a basic state pension as follows: Basic State Pension per week For yourself - £90.70 An adult dependant can be a wife or someone looking after your dependent child, or in limited circumstances, a husband. The age of an adult dependant makes no difference. If they are working or receiving other NI income maintenance benefits, this affects the £54.35 increase in the same way as for IB. The earnings limit for an adult dependant is £59.15, so the increase won't be paid if they earn more in any week; occupational and personal pensions count as earnings here. A woman can only receive an increase for her husband if, immediately before drawing a state pension, she was receiving an increase for him with IB. If your adult dependent receives income maintenance benefits (e.g. severe disablement allowance or IB) those benefits will reduce or cancel out a dependent's increase to your state pension. HOW DO YOU CLAIM STATE PENSION? Normally The Pension Service sends you a claim pack about 4 months before you reach state pension age. This will give you three options. You can ring 0845 300 1084 to make a claim over the phone; ask for a claim form; or send in a tear-off slip to get the claim form. A new service is being introduced whereby you can complete the claim form over the phone and do not need to sign it. You can also complete a state pension claim form using The Pension Service website: www.pensionservice .gov.uk. Although normally you will be automatically contacted about your state pension, this does not always happen. The Pension Service may not have your current address, especially if you have not worked for some time. If you haven't received the claim pack by 3 months before your state pension age ring 0845 300 1084 to get a pack (this number is only for making a claim. Staff will not be able to provide general information about pensions or help if you are more than 4 months away from state pension age). If you claim after you reach state pension age you can only get up to 3 months back payment. If you are working and intend to put off claiming state pension in order to gain extra state pension, let The Pension Service know so they can make the necessary arrangements. If you have decided it is sensible to keep another benefit such as carer's allowance or severe disablement allowance because of the effect on your own tax or benefits position, again let The Pension Service know that you don't wish to claim state pension yet. You will be sent a notice saying how much your state pension will be. You can then work out the effect of state pension on your tax and benefits position. You could do this earlier by asking for a state pension forecast. If you have put off claiming (for whatever reason) and decide that you want to claim your state pension, you should claim about 3 months beforehand. Ask for a claim form if you haven't got one. State pensions can be automatically backdated for 3 months. However, if you want to give up your state pension you cannot backdate that choice. You can only give up your state pension once. Note that state pension can only start from a pay day, which is normally Monday for people who start to draw their state pension now. You cannot receive any state pension for days before your first pay day, even if you have reached state pension age. STATE PENSION FORECASTS To check your contribution record, you can ask for a state pension forecast if you are over 30 days away from your state pension age. The forecast will give you your current state pension entitlement based on the records held by the HM Revenue & Customs. It should allow you (with some help if necessary) to make the right decisions about your future contribution position. To get a forecast contact your social security or Jobcentre Plus office or the Pension Service and ask for form BR19 or ring the State Pension Forecasting Team on 0845 300 0168. DWP LEAFLETS The following DWP guides give general information about different types of pensions:
These can be obtained by contacting: 0845 731 3233; or Textphone 0845 604 0210; or downloaded from: www.thepensionservice.gov.uk/resourcecentre/home.asp |
