Payment of state pension by 4 weekly & 13 weekly methods.
Dear Department for Work and Pensions,
BR 2189 states if you are paid every 4 weeks your first payment (in the new financial year) could be made up of 3 weeks at the old amount and 1 week at the new amount and if you are paid every 13 weeks your first payment could be made up of 11 weeks at the old amount and 2 weeks at the new amount. For simplicity if we assume a pension rise of
£5-00 your figures represent an under-payment of £15-00 and £55-00 respectively. When do pensioners receive these underpayments?
If a pensioner changes to weekly paid during the year can you confirm that in addition to the 3 or 11 old payments from the previous year he will receive his full entitlement of 52 weeks in the current year?
In the case of the 3 weeks at the old amount they would have been for weeks 50, 51 and 52. If in that year their birthday was such that their first pension payment was due from week 50 this would result in anunderpayment of 3 whole weeks pension. In the following year he would receive a total of 3 old and 49 new payments. Similarly to have 11 weeks carried over because your pension entitlement started from week 42 it means in your first pension year you have been underpaid 11 weeks pension. In the following year he would be paid 11 weeks old and 41 new. In both cases the underpayments are subject to tax under present tax legislation. When will the pensioners receive the money that they have been underpaid?
I have a letter from the Pension Service dated 15th January 2004 that states "it therefor means that most retirement pensions are paid over a crossover period between the diferent finacial years". Does this mean that most pensioners are underpaid?
Finally can you confirm that the only way to get a corrct pension is to receive it weekly.
G S Parmenter
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