The State Pension is changing
The State Pension is being changed in April 2016 to make it easier to understand and to help people plan for retirement. How much you are entitled to depends on your National Insurance record. If you are 55 or over you can request a State Pension statement based on the new rules.
For more information or to order a statement, visit: www.gov.uk/yourstatepension
What are the main changes?
The current State Pension is made up of two parts: the basic State Pension and the additional State Pension. A new single State Pension will replace both parts and will bring contracting-out and the National Insurance rebate to an end, with effect from 6 April 2016.
What does this mean for you?
Employees who reach State Pension Age (SPA) on or after 6 April 2016 will receive the new State Pension.
If you are a member of the Universities Superannuation Scheme, you are currently “contracted-out” of the additional State Pension. This means that you pay National Insurance at a lower rate because you get a National Insurance rebate of 1.4 per cent. From April, your National Insurance contributions, and the contributions the School pays on your behalf, will increase. To help you understand what this means for you, please refer to question seven in the National Insurance Changes FAQs.
LBS Scottish Widows Group Pension Plan members
Your National Insurance contributions will remain the same.
Please refer to the State Pension Changes document for more information.