Monthly Archives: October 2016

Thousands Could Lose State Pension Money

Thousands of workers could lose out on their state pension, receiving less than they expected when they retire. Up to 50,000 people, mostly women, who stopped work for a while to care for children, could be hit by the problem, according to Steve Webb, the former government Pensions Minister. explains

“Your State Pension entitlement is determined by the number of years of National Insurance contributions you have made, which you build up when you work… In 1978 the Government introduced Home Responsibilities Protection, to build up a parent or carers’ State Pension entitlement… This meant if you chose to spend time at home raising children and received child benefit your National Insurance record was protected and you should get the same entitlement you would have built up if you had been in work… The system was replaced with National Insurance credits on April 6, 2010… The problem is that child benefit and NI records were held on two separate computer systems during the 80s and 90s… In theory the information held on the two systems should be easily cross referenced and reconciled, however it’s likely that errors and conflicting information will occur… Webb has warned that tens of thousands may not receive as much they should because of the possibility of records becoming distorted from this poor record keeping.”