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To: Secretary of State for Work & Pensions

Full Basic State Pension for NI relief Pension savers

Re-think reducing the Basic State Pension for those that did what the Government wanted & saved for their retirement, encouraged to do this by giving NI relief no option was given saying that this would reduce the Basic State Pension (BSP) at retirement at least if they knew there was a risk an informed decision to take the relief could have been made. I believe as this is a new change it should be recinded as totally unfair to change now when so many are within years of their retirement date.

Why is this important?

By using the NI relief element to reduce the new State Pension from those that had the foresight to save is morally wrong & could be legally wrong when workers were given this there was not an option saying this will reduce your basic pension, employees who have been paying in to schemes via wages & had this relief have had a pension forecast every year & added the Basic State Pension in to their calculations, now we are told that we will lose some as its part of the Pension we have saved for ( encouraged by the Government) ie actual case history: a woman of 60 who is on an average wage has been on the D code NI relief for 18 years has been informed she will lose £36.50 per week that's £1898 even though she has a 43 year NI payment history. She has been informed that her private Pension will be £10,000 pa plus BSP for the last few years but now will be nearly £2000 down on this figure because of the change as no option to stop the relief or notice of this change has been given before now this is totally unfair.
Workers in this position on between £15000 - £30000 will be the most effected by this.
I believe the reasoning behind this is that private pension savers have their pension to top up their income, but for those who do not have big Pensions like MP's of 40k - 100k this amount matters a lot to their long term retirement plans. As receivers of a private pension they will not be able to claim any top up benefits & could well be worse off than someone who has never saved for a pension or worked at all. This is not fair or right

Category

Updates

2016-03-05 07:50:42 +0000

Check you payslip, if you are on a "D" NI code (before Apr 16, it's stopped from Mar 16) then the longer you have been n scheme this will affect you, especially those in NHS, Education & Council Pension schemes Final or CARE you have lost your right to a full Basic State Pension when you retire through no fault of yours.

2016-03-03 18:34:15 +0000

25 signatures reached

2016-03-01 09:58:02 +0000

10 signatures reached