PART 4: STATUTORY PAYMENTS
Crisis Loans (from April 1988). Interest free loans available in an emergency or as a consequence of a disaster, for people with no alternative financial means of avoiding serious damage or risk to their health or safety. COPYRIGHT © 2021 THE CHARTERED INSTITUTE OF PAYROLL PROFESSIONALS STATE PENSION A contributory, taxable and non-means tested benefit, introduced on 1st January 1909. Until April 2016 there were two categories of contributory pension, and two of non-contributory retirement pension. Contributory Pension • category A which is dependent on a person’s own contributory record • category B which is dependent on contributions paid by a spouse. Conditions for payment are that: • the person has reached State Pension Age, and contributions conditions are satisfied. • Where the conditions are met a flat rate basic pension is payable at the standard rate. Where conditions are only partly met, the basic pension is reduced. Non-Contributory Pension • category C - people over state pension age on 5th July 1948, thereby excluded from the National Insurance Scheme • category D - for people who either - attain age 80, or satisfy certain residence qualifications but fail to qualify for a Category A or B pension, or would receive less than the non- contributory rate. A married woman can receive a category A pension where the conditions are met on her own contribution record, otherwise a category B pension may be payable on her husband’s contribution record, when she has reached State Pension Age. She can also claim a category B pension if her own would be less than that payable as a result of her husband’s contribution record. No printing, copyi g or reproduction permitted. An additional earnings-related element (S2P) was, for any one reaching state pension age before April 2016, also payable based on earnings between the Lower Earnings Threshold (LET) and Upper Earnings Limit (UEL) for National Insurance contributions in tax years fromApril 1978 up to 5th April 2009 - only up to the Upper Accrual Point from 6th April 2009. The final relevant year is the last complete tax year before a person attains state pension age. Entitlement to S2P is given up where an employee is a member of a contracted-out pension scheme. Prior to 6thApril 1997, Contracted-Out Salary Related Schemes (COSRS) provided a Guaranteed Minimum Pension (GMP) worth about the same or greater than the additional pension payable under the state scheme. Contracted-Out Money Purchase Schemes (COMPS) and Personal Pensions have no guaranteed minimum but there is similarly no S2P entitlement. From 6th April 1997 the links with SERPS - see below (now S2P) were broken and there is
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