Also included with your annual benefit statement (for active
members) will be a State Pension forecast, as supplied by the Department of
Work & Pensions. The full caveats for this section of the statement are set
out below:
The “Current State Pension” estimate is based on your
National Insurance record at the date of the forecast.
The “Future State Pension” estimate is based on the
assumption that you will pay, be treated as paying or be credited with
full-rate National Insurance contributions from the date of the forecast
until you reach State Pension age. If, for any reason this assumption is
wrong, the estimated amount above could be too high.
If you are a married woman who has chosen to pay the reduced
rate of National Insurance – sometimes called “the small stamp” - your
“Future State Pension” amounts are based on the assumption that you will
continue to pay reduced-rate contributions.
The amounts shown are based on the current State Pension
rules and the rates in payment at the time of the forecast. They do not take
into account any future changes to State Pension rates or to the law
relating to State Pensions that may occur before you reach State Pension
age.
You may be able to pay voluntary National Insurance
contributions for certain years. See ‘Your pension statement explained’
leaflet for further details.
Your basic State Pension could be different to the amount
shown. This is because, by no later than 2015, the rates will go up each
year in line with average national earnings rather than average prices. Over
the long term, average national earnings have tended to rise faster than
average prices.
From 6 April 2012, if you are a member of a contracted-out
defined contribution pension scheme (also called a money purchase scheme),
you will cease to be contracted out and may start to build up additional
State Pension instead. However, if you are currently in a contracted out
defined contribution pension scheme, the amount of additional State Pension
included in the “Future State Pension” does not include any extra additional
State Pension you may build up from 6 April 2012 because you are no longer
contracted out. Pension Forecasts will reflect this change when National
Insurance records have been updated.
The amount of additional State Pension
you actually
receive at State Pension age may be different from that shown in your
forecast,
especially if you have been or remain a member of a contracted-out pension
scheme.
Sometime between 2012 and 2015, additional State Pension will
gradually become a simple, single-rate weekly top-up to the basic State
Pension.
If you receive more than one State Pension forecast, do not
add the amounts together. Always use the more recent forecast you have
received.
The amounts do not include any other income your household
may get from income-related benefits such as Pension Credit.
If you think any of the information in this forecast is
wrong, tell the DWP by telephoning 0845 3000 168
The leaflet ‘Your pension statement explained’ (CPF5) gives
more information about your State Pension. For a copy of this leaflet
please visit:
www.direct.gov.uk/en/Diol1/DoItOnline/DG_182356 or telephone
0845 7313 233 or textphone 0845 6040 210 to ask for a copy.
