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News-direct-Pensions Bill

16 July 2007
Categories: News , Investments
Voluntary contributions - Pensions Bill

Voluntary contributions

The Pensions Bill had its second reading in the House of Lords on 14 May 2007. When the Bill becomes law it will reduce the number of qualifying years needed to qualify for a full basic state pension from 39 for women and 44 for men to 30 years for those reaching state pension age on or after 6 April 2010. There is no change to the number of qualifying years needed for entitlement to bereavement benefits.
The Government advised that contributors may be entitled to a refund if they have continued to make voluntary National Insurance contributions since 25 May 2006 but were unaware of the Government's intention to reduce the number of qualifying years required for a full basic state pension. HMRC will make refunds to people who apply and satisfy the following conditions:

  • they reach state pension age on or after 6 April 2010;
  • they have paid voluntary contributions on or after 25 May 2006 (the date the Pension White Paper was published) but before the Pensions Bill gets Royal Assent (expected in summer 2007); and
  • they were not aware of the changes when they paid.


www.hmrc.gov.uk

Categories: News , Investments
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