Contracted-Out Deductions from Additional State Pension
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Dear Sir or Madam,
Could you please provide a copy of the rules (or an explanation of the rules) used to calculate Additional State Pension based on earnings from 6 April 1978 to BEFORE 5 April 1997 (where earnings for most years are above LEL):
- that is for persons who drew their state pension from state retirement age where payment commenced prior to 5 April 1997 (before the Pension Act 1995 came into force);
- where at least one year their earnings were above the LEL and were contracted-out;
- where at least one year their earnings were above the LEL and were contracted-in.
Since the Pension Act 1995 came into force, the COD deduction has been applied to additional pension earned during the whole period between 6 April 1978 and 5 April 1997, irrespective of whether the earnings were contracted-out or contracted-in. I wish to establish if this was the case before the Pension Act 1995 came into force.
Also, are you able to clarify if the method of calculation changed during the period 6 April 1978 and 5 April 1997, and if so the nature of the changes?
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Dear Mr White,
Please find attached a response to your query.
Central FoI Team
Department for Work and Pensions