It was recently announced that HM Revenue and Customs has published a Tax Information and Impact Note (TIIN), providing information about the introduction of the voluntary Class 3A National Insurance Contributions.
This new system will allow pensioners and those reaching State Pension age before 6th April 2016 the opportunity to improve their retirement income by obtaining inflation-proofed extra additional State Pension. We’ve provided everything you need to know on this new scheme below.
George Osbourne announced the State Pension Top Up in the Autumn Statement on 5th December 2013.
This new measure will allow existing pensions and those reaching State Pension age before 6th April 2016 to acquire additional State Pension by making Class 3A National Insurance contributions. This measure is aimed at women and other groups who have done less favourably under the existing State Pension rules and have not previously been able to top these up.
The new scheme will also provide an opportunity for pensioners to improve their retirement income by obtaining inflation-proofed extra additional State Pension.
There are two entitlement conditions:
The measure will apply to the whole of the UK but this is dependent upon the Royal Assent of the Northern Ireland equivalent of the Pensions Act 2014 to allow for the increase in the additional State Pension.
The measure will be monitored and evaluated using management information collected from applications.