The state pension is changing
The state pension is changing from 6 April 2016.
The government wants to simplify the system which is currently means tested and complicated.
The changes will have implications for you if you reach state pension age (SPA) on or after 6 April 2016.
How will I be affected?
I reach SPA on or after 6 April 2016: The new State Pension rules will apply to you.
I reach SPA before 6 April 2016: You will receive the current state pension, even if you defer it until after 6 April 2016.
I am already receiving my state pension: You will continue to receive your state pension as you do now.
You can find out when you will reach your state pension age at www.gov.uk/calculate-state-pension
How much new state pension will I receive?
— The Government has set the new state pension at £155.65 per week, however the amount of new state pension you receive will depend on your National Insurance (NI) record.
— To receive the full new state pension, you must have at least 35 years of NI contributions.
— To qualify for any of the pension, you must have at least 10 years of NI contributions.
— Those with between 10 and 34 years of contributions will receive a proportion of the pension.
You can ask for an estimate of your new state pension at www.gov.uk/state-pension-statement
You can find out your NI record at www.gov.uk/check-national-insurance-record
As a member of USS, SBS, NHS, LGPS, MRC or STSS Pension Schemes you have been contracted out of the State Scheme and have paid lower NI contributions, which means you have not been building up additional State Pension.
Your NI contributions will increase from April 2016
The current state pension is made up of two parts: the basic state pension and the additional state pension.
If you are a member of one of the schemes listed above you currently pay a lower rate of NI because you are contracted out of the additional state pension.
The new state pension will replace the basic and additional state pension and end contracting out. This means that from April 2016 you will no longer receive the NI rebate of 1.4 per cent.
You can find out more about contracting out at www.gov.uk/yourstatepension
Your new state pension may have a deduction
Because your NI record is used to calculate your new state pension, it may be reduced for the time you were contracted out and paying less NI.
You may be able to get more new state pension by adding qualifying years between 5 April 2016 and your State Pension Age.
You can find out how the new state pension is calculated at www.gov.uk/new-state-pension/how-its-calculated
The pension you receive on retirement from your Occupational Pension Scheme will not be affected by the changes to the state pension.