Class 3A will not replace the existing Class 3 Voluntary National Insurance Contributions, rather it will sit alongside. HMRC will handle applications and collect payments. The intention is to deliver these changes as far as possible within the existing National Insurance and benefit framework to keep administrative costs to a minimum. Primary legislation will be required to introduce the new arrangements and the government has tabled an amendment to the current Pensions Bill, which is being scrutinised by the House of Lords. The government intends to discuss the details of the policy and the detailed design of the scheme with key stakeholders before secondary legislation.
The nine page policy document is available to read through the link below.
Class 3A Voluntary National Insurance: Policy detail
Class 3A Voluntary National Insurance contributions
4 April 2014
Pensioners and those who reach pension age in the next 2 years will be able to get up to £25 of additional State Pension a week.
Pensioners and those who reach pension age in the next 2 years will be able to acquire up to £25 of additional State Pension a week under plans set out by the Pensions Minister.
The State Pension top up will be available from October 2015 to all those reaching State Pension age before 6 April 2016.
The scheme will allow people the opportunity to get inflation-proofed additional State Pension by making Class 3A Voluntary National Insurance contributions.
The cost of a State Pension top up is based on a person’s age and takes average life expectancy into account. For a 65-year-old an extra £1 of pension a week will be £890, whereas for a 75-year-old the contribution rate for the same amount of pension is £674.
A calculator is available online which illustrates the contribution rates based on age and how much people wish to increase their additional pension by.
Minister for Pensions Steve Webb said:
“The State Pension top up will provide an opportunity for people to boost their retirement income by up to £25 a week. This is another bold action in how we build a stronger economy through choice in retirement income. The scheme will give them a guaranteed, index-linked return and will be particularly attractive for women pensioners who will draw the higher pension for longer. It will also help the self- employed, who currently qualify for only the basic State Pension.”
Read the full press release
Limited Liability Partnerships
24 April 2014
Regulations have been published which bring into effect the Limited Liability Partnership section of the National Insurance contributions Act 2014.
CIPP Policy News Journal
08/04/2015, Page 225 of 521
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