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eric hobson

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Hi, can anyone of you experts out there answer a question for me? The state pension increased in the new tax year April 6th 2012. Both my wife and myself have our pensions paid into the bank weekly, hers on a Monday and mine on a Friday. My wife,s 1st payment was on the 9th April (her 1st payment date after the 6th) when she received the increase. My 1st payment date was the 6th, I will accept that it didn,t come into force until midnight and I missed that payment, but I also didn,t get it on the 13th and the 1st increased payment was on the 20th. The pension helpline statement is that is how the system works and they are not in a position to explain more. I now await a call from their specialist pension department.

My point is that in this tax year I will only receive 51 payments at the new rate whereas my wife will receive 52. How many pensioners does this affect? If 50% of all pensioners are treated in this way it is a nice little earner for Osborne. Am I being too picky or are they actually stealing my money?

If and when I receive the call from their specialist I will post the result. In the meantime Help !!!!!!

PS My calls to them cost £5.75 most of it spent listening to Greensleeves.

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Hi Eric,

After many years of advising for the CAB, this 'smells' as though the Benefits Agency/Pensions Service have made a mistake, surely you should have received your first payment of increased pension on Friday 13th.? --BUT -- I am unable to prove it with the info. currently at my disposal ( I retired from Bureau service two years ago).

Either -- go to your friendly local Citizen's Advice Bureau if you have one handy, who should be able to find the answer to your question, OR --'phone or e-mail the Pensions Advisory Service(TPAS) (totally independent of Govt. Depts.) on: 0845-601-2923.Their website has an on-line enquiry form.

Their website is here: http://www.pensionsadvisoryservice.org.uk/

 

Best of luck!

 

Colin.

 

P.S. I would be interested to know how you get on and what the end result is.

 

C.

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I too have had little success at phoning HMRC and I find for non urgent matters it is better to send your tax office a polite letter and let nature take it's course and after an eternity - but they can be quick too on occasion - it will get corrected.

 

They may be inept but they are not dishonest!

 

Not worth getting excited over though - especially as Uncle George will like as not want 20% of your £5.75 - assuming you have other pensions - and will probably already have allocated you a tax code to reflect this - although on past performance you would be as well to check that for accuracy too!!

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eric hobson - 2012-04-25 11:26 AMHi, can anyone of you experts out there answer a question for me? The state pension increased in the new tax year April 6th 2012. Both my wife and myself have our pensions paid into the bank weekly, hers on a Monday and mine on a Friday. My wife,s 1st payment was on the 9th April (her 1st payment date after the 6th) when she received the increase. My 1st payment date was the 6th, I will accept that it didn,t come into force until midnight and I missed that payment, but I also didn,t get it on the 13th and the 1st increased payment was on the 20th. The pension helpline statement is that is how the system works and they are not in a position to explain more. I now await a call from their specialist pension department. My point is that in this tax year I will only receive 51 payments at the new rate whereas my wife will receive 52. How many pensioners does this affect? If 50% of all pensioners are treated in this way it is a nice little earner for Osborne. Am I being too picky or are they actually stealing my money? If and when I receive the call from their specialist I will post the result. In the meantime Help !!!!!!PS My calls to them cost £5.75 most of it spent listening to Greensleeves.

I think that your error may be in assuming that the pension increase came in on April 6th. I believe that it came in on April 9th.

Going back through three years I found that the annual increase for public service pensions always began on the first Monday after the start of the financial year and I suspect that ordinary old age pensions may follow the same pattern.

I always thought that pensions were paid retrospectively, although it's not my area of expertise by any means. This means that the your first full week at the new rate would be the 20th, as the 13th is only four days after the start of the increase. For you it would appear to be correct.

I am puzzled though as to how your wife came to receive the increase on April 9th. If they are paid retrospectively she should not have had the increased pension for the previous week. The previous week should quite clearly have been at the old pre-increase rate.

Are you absolutely sure that your wife had her increased payment on Monday April 9th?

Edited to say: I found this link which confirms my original theory about the start date of the increase. It is the 9th and not the 6th.


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A colleague tells me that this may explain the situation. Those who retired after April 6th 2010 receive their payments in arrears, so this may explain why Eric will not get his increase until the 20th, which will be the first full week after the increase on April 9th.

If his wife retired before April 2010, her pension may well be paid in advance, hence the reason that she received the increase immediately.

I don't think that any mistake has been made and that it is simply the system and mainly because of the change of payments from in-advance to in-arrears.
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Sorry Eric,

I'm pretty sure that F.G. has the answer -- I should have checked your dates regarding the effective date of the pension increase -- and didn't do so I'm afraid! "Never take anything at 'face value' -- always check", I was told at the C.A.B. -- I forgot that vital lesson this time!

I had a suspicion that the change of regulations that happened in 2010 might have provided an explanation, the sources that I gave you earlier can confirm or deny that Francis' advice is on the right lines.

 

Colin.

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If you take your state pension monthly they used to pay you in arrears but if you take it weekly you get paid on each Monday in advance - I don't know if this still applies - but as we feel disinclined to wait four weeks for our pensions we get paid every Monday and jolly satisfying to see the bank balance revive by around £240 each week it is too!
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Francis has posted a link to the date of application of the new rate; the change to payment in arrears (rather than in advance) is detailed on the Direct.Gov site (extracted as follows):

 

Benefit payment changes that start from April 2010

 

The changes also affect the payment of State Pensions. If you reach State Pension age on or after 6 April 2010 you'll be paid in arrears on a day linked to your NI number. This means you will be paid at the end of your pay week, not from the start. Your payday is the day you normally receive your payment (sometimes called your ‘pay week-ending day’).

 

So, as Francis says (and if the other pension commenced payment before April 2010) all is entirely "above board".

 

Annoying to think that the authorities might have got it right, isn't it. ;-)

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Tracker - 2012-04-25 5:14 PMIf you take your state pension monthly they used to pay you in arrears but if you take it weekly you get paid on each Monday in advance - I don't know if this still applies - but as we feel disinclined to wait four weeks for our pensions we get paid every Monday and jolly satisfying to see the bank balance revive by around £240 each week it is too!

As I said earlier, in 2010 this choice was removed, but only for new pensioners. If you previously claimed in advance you can carry on doing so.

I suspect that this is the heart of the OP's problem, he is paid in arrears and his wife may well be paid in advance. 

'Crossed in the post' with Robinhood!
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I totally forgot about the change in 2010 - the system the use is as follows (taken from DirectGov)

 

If you reach State Pension age on or after 6 April 2010 you'll be paid in arrears on a day linked to your NI number. This means you will be paid at the end of your pay week, not from the start. Your payday is the day you normally receive your payment (sometimes called your ‘pay week-ending day’).

 

National Insurance number

 

Your National Insurance number (NINO) is the number you get when you first start work or claim a benefit. It is normally shown on the letters The Pension Service sends you.

 

The Pension Service uses the last two numbers of your NINO to work out your new pay week-ending day. This is shown in the following table.

 

Last two numbers of National Insurance number Pay week-ending day

00 to 19 Monday

20 to 39 Tuesday

40 to 59 Wednesday

60 to 79 Thursday

80 to 99 Friday

 

For example, if your National Insurance number is QQ 12 34 56 A, your pay week-ending day will be Wednesday.

 

 

State Pension in payment prior to 06/04/10

 

If you already received the State Pension or reached State Pension age before 6 April 2010 these changes to the State Pension will not affect you very much. *

 

The rate of basic State Pension is increased from April each year by at least the level of growth in average earnings. The current Government's policy is that the basic State Pension will increase each year by the highest of:

 

growth in average earnings

growth in prices

2.5 per cent

 

This does not apply to the additions to State Pension. Additional parts of the State Pension normally rise in line with the increase in prices.

 

So in 2012-13 basic State Pension and additional State Pension will rise in line with the Consumer Prices Index.

 

----------------------------

 

* hence the differing payment schedules.

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Hi, thanks for all the input, I will now await the call from pension advisor but now suspect they will be right. My wife actually received her increase on 5th Apr (because of Easter) for the 9th. She has now had 3 payments at the new rate whilst I have had one. It may well be as suggested that she has received her pension since 2005 but mine only began last year. Ah well back to the dry bread and cold soup !! :-(
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Our State Pensions are paid WEEKLY into our Bank account, make em work I say , I worked  hard enough for the Pensions and all  increases come straight away, when I first applied for the Pensions I was asked if I wanted to defer them with a chance of higher  payouts, thought about this for a long time, 10 seconds to be exact and said Nah, I will have it now. for tomorrow we  die as they say.
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  • 2 weeks later...

8-) Dose the state give everyone £1000 PM when they retire?WHY?

 

The pensions paid by contributions based on the last salary assues everyone of a good income so why the need for £1000 extra paid by working tax payers??And extra £1000 now and again is quite nice.but each month 8-)

 

Im trying to understand the system as i hear it on Radio 4 which i sometimes listen to when its pouring 8-) *-) So far everyone seems to want more from less tax,which mean the poor working class will become worse off 8-)

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plumbersvan - 2012-05-11 10:47 AM

 

8-) Dose the state give everyone £1000 PM when they retire?WHY?

 

 

Only if you work in the public sector >:-).....................Dive Dive Dive!!.........prepare for incoming >:-) >:-)

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8-) OH

 

*-) THen ive got it all wrong *-) Some time ago in London (before the oylimpics)i heard it said the state minimum pension was £960 pm net :-S which added to an index linked pension should provide enought to live quite well. *-)

 

There was a girl in Italy that decided to retire aged 31 and got 700€ PM 8-)

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plumbersvan - 2012-05-11 11:49 AM

 

8-) OH

 

*-) THen ive got it all wrong *-) Some time ago in London (before the oylimpics)i heard it said the state minimum pension was £960 pm net :-S which added to an index linked pension should provide enought to live quite well. *-)

 

There was a girl in Italy that decided to retire aged 31 and got 700€ PM 8-)

 

 

 

 

So which country are you talking about ?

 

U.K - or Italy ?

 

 

( p.s. It's still " before the Olympics " in London )

 

 

;-)

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8-) OH UK of course B-)

 

I thought it might be quite nice to have an extra income *-) if Italy is still providing pensions from 30?Must be a catch :-S something along the lines of having to have worked for X time :-| :-| :'(

 

Dose every one at least get a UK state pension at 60 *-) or are there hoops attached?

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plumbersvan - 2012-05-11 12:40 PM

 

 

 

Dose every one at least get a UK state pension at 60 *-) or are there hoops attached?

 

 

 

 

 

 

What you get depends on how long you have been paying your National Insurance.

 

The system is currently under review, and state pensions in future may not be paid until you reach at least 65 - possibly 68.

 

Many people have no other pension.

 

 

 

 

 

 

 

 

 

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There are plenty of websites, not least government ones, that explain the myriad complexities of the UK state pension scheme and you might try googling it and having a read, but it is all based on contributions and if you don't work and pay NI contributions or pay voluntary NI contributions I suspect that you won't get any. Neither will you get much sympathy I also suspect!

 

There is probably some other benefit that those who have not worked for whatever reason get at state pension age, which is rising as average life expectancy increases, and a little research online should give you some answers.

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plumbersvan - 2012-05-11 12:40 PM

 

8-) OH UK of course B-)

 

I thought it might be quite nice to have an extra income *-) if Italy is still providing pensions from 30?Must be a catch :-S something along the lines of having to have worked for X time :-| :-| :'(

 

Dose every one at least get a UK state pension at 60 *-) or are there hoops attached?

Forgive me for asking but are you British or are you a foriegner wishing to relocate over here after hearing about all the generous welfare benefits we get?

If you are British then your lack of knowledge about your own countrys retirement age and state pension is appalling.

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8-) Im English British lived in the UK since before 1066 family abolished by the Labor and ive never thought about being pensioned 8-) I simply imagined all English reaching 65 would be sent a pension B-)

 

Its been my intention for some time to look into benefits and health :-| There are always other things to do :-| 38 years to go for pension 8-)

 

 

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