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Old 15th Jan 2013, 07:09
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F.O.D
 
Join Date: Sep 2006
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We need AL R for an expert opinion,

but I waded through the white paper and in the small print, there appears to be a sting in the tail for Public Sector employees who were contracted out. Even if you have worked in the RAF for 35 years, you will not get the full £144 pension. You will be entitled to the greater of your current state pension entitlement (£107) or £144 minus a "rebate derived amount." Steve Webb during questions in Parliament gave the example of a teacher who had always been contracted out. The NI rebate derived deduction will take the amount back down to £107! However, once you pay full contracted in NI contributions, you will earn £4.11 extra for each year's post implementation NI contribution. So after 10 years or so under the new scheme you will get £144, but those who reach state pension age soon after implementation will get the existing pension value

I hope I am wrong but that is how I understand the white paper

Regards

F.O.D
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