cancel
Showing results for 
Search instead for 
Did you mean: 

State Pension Query.

Community Veteran
Posts: 8,960
Thanks: 1,100
Fixes: 10
Registered: ‎02-08-2007

State Pension Query.

Any experts on the state pension on the forum ?

We both get the state pension which increased this month.

My wife got the increase on Monday 8th April except I did not.

Looking at the letters we were sent it states my wife's pension increases on 8th but my letter states it increases on the 9th.

I always assumed everybodys increased on the same date but clearly I am wrong, can someone provide more info about this ?

I could not find any specific details on the internet about this issue.

35 REPLIES 35
Minivanman
Seasoned Hero
Posts: 7,362
Thanks: 2,067
Fixes: 1
Registered: ‎04-11-2014

Re: State Pension Query.

Not an expert, but just to say I had a letter on 17th of last month telling me about my state pension increase. Mrs Minivanman will not get state pension until 2021 - so no letter for her. Tongue 

jgb
Aspiring Pro
Posts: 118
Thanks: 84
Fixes: 1
Registered: ‎01-08-2007

Re: State Pension Query.

@gleneagles 

The state pension is paid in arrears (usually in 4 weekly payments ) on a set day of the week. If I recall this is set when you initially qualify for the state pension and is based on the day of the week that your qualifying birthday occurs.

The increase to the April 2019 rate is paid from the first set day of the week after the 5 April and so the exact date varies from person to person depending on the day of the week that they are paid on. Your wife must be paid on a Monday and you must be paid on a Tuesday.

The first payment in the new tax year may not be at the 2019/20 rate for all the weeks included in the payment as some weeks may be prior to the increase date and those will be paid at the 2018/19 rate. Thus any payment this week will all be at the old rate; any payment next week will have one week at the new rate and the rest at the old rate etc.

It is a wonderful system!

Luzern
Aspiring Champion
Posts: 3,845
Thanks: 490
Fixes: 3
Registered: ‎31-07-2007

Re: State Pension Query.

The weekday your pension is paid varies and so the application of the annual increase will too. 

Last 2 digits of  	    Payment day 
NINO
00 to 19	           Monday
20 to 39	           Tuesday
40 to 59	           Wednesday
60 to 79	           Thursday
80 to 99	           Friday
No one has to agree with my opinion, but in the time I have left a miracle would be nice.
jgb
Aspiring Pro
Posts: 118
Thanks: 84
Fixes: 1
Registered: ‎01-08-2007

Re: State Pension Query.

@Luzern 

Thank you. I stand corrected regarding how the the day of the week of payment is determined.

8BKA
Aspiring Pro
Posts: 225
Thanks: 51
Fixes: 3
Registered: ‎01-12-2016

Re: State Pension Query.

Hi       jgb

My state pension is paid on a Monday because the last two numbers of my NI number  are 14

My letter says the increase is from 9th April  which is a Tuesday the day after my 4 weekly pension was paid

I always thought it was the day after the pension pay day because last year the increase was also on a Tuesday so the pension increase for the first payment is for full weeks

You said  "It is a wonderful system! "  I totally agree I get an additional increase on my State Pension each year because I was contacted out and get part of private pension increase paid as CPI into my state pension not RPI into my private pension something called GMP Guaranteed Minimum Pension

I have asked many times about this but no one call explain where the calculations come from

 

Brian A

jgb
Aspiring Pro
Posts: 118
Thanks: 84
Fixes: 1
Registered: ‎01-08-2007

Re: State Pension Query.

Another “wonderful” aspect of the system is the way HMRC deal with the state pension so that they are likely to overtax individuals in most years.

HMRC consider that the pensioner gets all 52 weeks paid at the current year rate in the tax year. However, the first payment in the tax year is likely to have some or all of it at the previous year’s rate. For example, I received a four week payment today, 10 April, all of which is at last year’s rate but HMRC do not recognise this and my code assumes that all 52 weeks are at this year’s rate, whereas only 48 weeks  (i.e. 12  four weekly payments) will be. Therefore they will tax me on about £20 I will not receive this year. Not much, but it happens most years and to a lot of pensioners.

I have tried to explain the issue to HMRC but they are deaf to the argument.

I too was contracted out for much of my working life and have given up trying to understand the GMP bit of the pension and how it is calculated.

8BKA
Aspiring Pro
Posts: 225
Thanks: 51
Fixes: 3
Registered: ‎01-12-2016

Re: State Pension Query.

jgb 

You are quite correct just checked my tax code and they say I will be getting 13 months at the new rate and like yourself I'm £18 down so I hope the government will spend the £3.60 wisely

 

Brian A

Community Veteran
Posts: 8,960
Thanks: 1,100
Fixes: 10
Registered: ‎02-08-2007

Re: State Pension Query.

Thank you all for your replies.

I am now better informed but not much wiser !

Not sure what my birthday or date I get paid comes into it...Birthday is in December.

As for getting paid, I do not get paid as I am now retired.

@Luzern 

That NINO is very clear but surely a con job, why should my NINO number have anything to do with when I get my increase ?

Or perhaps I am missing something here ?

I opted for weekly payments so the most I will miss out on is £ 3 odd.

Community Veteran
Posts: 19,011
Thanks: 354
Registered: ‎12-08-2007

Re: State Pension Query.

But if you overpay you will get a refund at the end of the tax year or your tax code will be adjusted to give it back to you.

.

Superuser
Superuser
Posts: 7,305
Thanks: 1,189
Fixes: 76
Registered: ‎30-07-2007

Re: State Pension Query.

HMRC consider that the pensioner gets all 52 weeks paid at the current year rate in the tax year. However, the first payment in the tax year is likely to have some or all of it at the previous year’s rate. For example, I received a four week payment today, 10 April, all of which is at last year’s rate but HMRC do not recognise this and my code assumes that all 52 weeks are at this year’s rate, whereas only 48 weeks  (i.e. 12  four weekly payments) will be. Therefore they will tax me on about £20 I will not receive this year. Not much, but it happens most years and to a lot of pensioners.

I have tried to explain the issue to HMRC but they are deaf to the argument.

I had this discussion with them when I started to receive my state pension earlier this year. I would actually only get 12*4 weekly payments in this tax year but they are taxing me on 50 weeks. Apparently HMRC's argument is that they tax state pensions on what you are 'entitled' to in any tax year not what you actually get paid!. Obviously it's too difficult for the DWP to raise a P60 for everyone to state what's actually been paid, unlike every private pension provider who has to!.

jgb
Aspiring Pro
Posts: 118
Thanks: 84
Fixes: 1
Registered: ‎01-08-2007

Re: State Pension Query.

@MisterW 

The usual joined up government! Seems to go against the principles of fair taxation! 

Because there is no P60 for the state pension, there is no automatic recovery in future years when HRMC reconcile income and tax payment.

No worries it is all going to a good cause - Her Majesty's Treasury.

Superuser
Superuser
Posts: 7,305
Thanks: 1,189
Fixes: 76
Registered: ‎30-07-2007

Re: State Pension Query.

No worries it is all going to a good cause - Her Majesty's Treasury

@jgb that good cause has had enough of my money over the last 45+ years!Grin

 

Luzern
Aspiring Champion
Posts: 3,845
Thanks: 490
Fixes: 3
Registered: ‎31-07-2007

Re: State Pension Query.

My wife and I suffer anomalous payment dates; she gets paid on Mondays as I do, but it should be Friday based on her final digits. IT could be our going 4 weekly at one point, or perhaps it has to do with her taking her own pension instead of tagging on to mine.

Nearly everyone on PAYE ends up with a small underpayment of tax due. I'll come back on that later for lack of time.

No one has to agree with my opinion, but in the time I have left a miracle would be nice.
Jonpe
Seasoned Champion
Posts: 2,365
Thanks: 709
Fixes: 8
Registered: ‎06-09-2016

Re: State Pension Query.

I'm approaching the end of my working life, and one thing I've discovered is that no-one knows anything about pensions, not even the people administering them.  As I'm sure you know, NI is no longer payable once you reach your state pension age.  Sounds straight forward, but is it payable for the pay period during which you reach state pension age, or do you pay a proportion according to when in the pay period you become eligible for your state pension?  For example I'm due to receive my four-weekly pay two days after I reach state pension age, and that pay is for the pay period ending five days after I reach state pension age.  Should I expect not to pay any NI on that pay packet at all since the pay is received after I've reached state pension age and is for a pay period ending after I've reached state pension age?

The tax code tells you how much you can earn tax free, so shouldn't have any bearing on one month's pension being lower than the others.  I'm in receipt of a small pension from a previous employer, and the whole lot is taxed at 40%, but every few months the amount varies by 40p because it's taxed in the same way as salaries/wages.