UK pensions

[sunnyjim5]

Whilst it is not unreasonable for the legislation to be a bit confusing to lay-people, a letter of "explanation" should be written in such a way that a single reading conveys the truth with no abiguity......

I have never received a letter from the DWP or my occupational pension provider that I have failed to comprehend.

Why have I been left out ?

I really want one of these incomprehensible letters so I can have fun complaining !

[Rajab Al Zarahni]

Whilst it is not unreasonable for the legislation to be a bit confusing to lay-people, a letter of "explanation" should be written in such a way that a single reading conveys the truth with no abiguity......

I have never received a letter from the DWP or my occupational pension provider that I have failed to comprehend.

Why have I been left out ?

I really want one of these incomprehensible letters so I can have fun complaining !

“Wish it, believe it, and it will be so.”

― Deborah Smith, Alice at Heart

[evadgib]

This reply from re EDM 1235 was somewhat predictable from a Cabinet Minister:

Dear Eva,

Thank you for your email about Early Day Motion 1235. You should be aware that Members of the Government do not, by convention, sign any Early Day Motions, as doing so is likely to breach the Ministerial Code's rules on collective responsibility.

With regards to the EDM, as you know, the UK state pension is payable worldwide and is uprated abroad where there is a legal requirement to do so. In some countries, however, there is no agreement with the UK for securing the social security rights of people moving between the two countries. As a result, pensioners who move to these countries still receive the state pension but do not have their payments uprated as they would be for UK residents. The Department for Work and Pensions endeavours to make this clear to those thinking of moving abroad and publishes guidance on its website.

It has been and remains the policy of successive governments not to enter into new agreements with countries or territories where this would include up-rating pensions in order to contain the long-term cost of the UK social security system. I can tell you that this issue has been examined extensively by the domestic courts, culminating in a ruling by the European Court of Human Rights in 2010. In all these cases the courts have found in favour of the Government.

I appreciate this is not what you wanted to hear, but I hope this helps explains why the situation is as it is.

Best wishes

<Redacted>

--------------------------------------------

Rt Hon <Redacted> MP

Member of Parliament for ....................

[transam]

This reply from re EDM 1235 was somewhat predictable from a Cabinet Minister:

Dear Eva,

Thank you for your email about Early Day Motion 1235. You should be aware that Members of the Government do not, by convention, sign any Early Day Motions, as doing so is likely to breach the Ministerial Code's rules on collective responsibility.

With regards to the EDM, as you know, the UK state pension is payable worldwide and is uprated abroad where there is a legal requirement to do so. In some countries, however, there is no agreement with the UK for securing the social security rights of people moving between the two countries. As a result, pensioners who move to these countries still receive the state pension but do not have their payments uprated as they would be for UK residents. The Department for Work and Pensions endeavours to make this clear to those thinking of moving abroad and publishes guidance on its website.

It has been and remains the policy of successive governments not to enter into new agreements with countries or territories where this would include up-rating pensions in order to contain the long-term cost of the UK social security system. I can tell you that this issue has been examined extensively by the domestic courts, culminating in a ruling by the European Court of Human Rights in 2010. In all these cases the courts have found in favour of the Government.

I appreciate this is not what you wanted to hear, but I hope this helps explains why the situation is as it is.

Best wishes

<Redacted>

--------------------------------------------

Rt Hon <Redacted> MP

Member of Parliament for ....................

Reply...

So why does the UK take care of folk from 'your' no go countries that the UK takes in. For instance, a UK chap can marry someone from one of your 'no go' countries, be given a UK passport, divorce, and YOU take care of them for life....?

[evadgib]

Commonwealth links published this week. Given the number of 'Frozen' pensioners living in the 53 states that make up the Commonwealth they surely belong here:

http://thecommonwealth.org/commonwealthday

http://blogs.fco.gov.uk/hugoswire/2016/03/01/the-commonwealth-is-no-relic-of-the-past

[evadgib]

This reply from re EDM 1235 was somewhat predictable from a Cabinet Minister:

Dear Eva,

Thank you for your email about Early Day Motion 1235. You should be aware that Members of the Government do not, by convention, sign any Early Day Motions, as doing so is likely to breach the Ministerial Code's rules on collective responsibility.

With regards to the EDM, as you know, the UK state pension is payable worldwide and is uprated abroad where there is a legal requirement to do so. In some countries, however, there is no agreement with the UK for securing the social security rights of people moving between the two countries. As a result, pensioners who move to these countries still receive the state pension but do not have their payments uprated as they would be for UK residents. The Department for Work and Pensions endeavours to make this clear to those thinking of moving abroad and publishes guidance on its website.

It has been and remains the policy of successive governments not to enter into new agreements with countries or territories where this would include up-rating pensions in order to contain the long-term cost of the UK social security system. I can tell you that this issue has been examined extensively by the domestic courts, culminating in a ruling by the European Court of Human Rights in 2010. In all these cases the courts have found in favour of the Government.

I appreciate this is not what you wanted to hear, but I hope this helps explains why the situation is as it is.

Best wishes

<Redacted>

--------------------------------------------

Rt Hon <Redacted> MP

Member of Parliament for ....................

Reply...

So why does the UK take care of folk from 'your' no go countries that the UK takes in. For instance, a UK chap can marry someone from one of your 'no go' countries, be given a UK passport, divorce, and YOU take care of them for life....?

The best we can do in the meantime is keep drip, drip, dripping until something gives way. The late Warren Mitchell (as Alf Garnett) summed a similar situation up during a live performance in the late 80's @ the Marlow theatre in Canterbury:

"look at Ghandi. 'e went on 'unger strike an' they gave 'im INDIA!"

[i claudius]

The govt is 80 billion overdrawn this year do any of you honestly think they will upgrade pensions? I really wish they would,but then it would be nice to see them stopping overseas aid and to watch a squadron of pink pigs do a fly past

[evadgib]

I don't think they will, I KNOW they will. I just don't know when & nor do I know how they'll present the U turn to the public without making it look like we're seemingly getting something for nothing despite being fully paid up members of the club.

The backlash is what successive govts are afraid of & why parity has thus far been avoided.

As for the national debt; That's something to be shouldered by the entire populace and is frankly a pretty lame excuse to justify continuing to penalize a minority while claiming some ol' cobblers hidden in the small print that was not common knowledge prior to Carson.

[billd766]

This reply from re EDM 1235 was somewhat predictable from a Cabinet Minister:

Dear Eva,

Thank you for your email about Early Day Motion 1235. You should be aware that Members of the Government do not, by convention, sign any Early Day Motions, as doing so is likely to breach the Ministerial Code's rules on collective responsibility.

With regards to the EDM, as you know, the UK state pension is payable worldwide and is uprated abroad where there is a legal requirement to do so. In some countries, however, there is no agreement with the UK for securing the social security rights of people moving between the two countries. As a result, pensioners who move to these countries still receive the state pension but do not have their payments uprated as they would be for UK residents. The Department for Work and Pensions endeavours to make this clear to those thinking of moving abroad and publishes guidance on its website.

It has been and remains the policy of successive governments not to enter into new agreements with countries or territories where this would include up-rating pensions in order to contain the long-term cost of the UK social security system. I can tell you that this issue has been examined extensively by the domestic courts, culminating in a ruling by the European Court of Human Rights in 2010. In all these cases the courts have found in favour of the Government.

I appreciate this is not what you wanted to hear, but I hope this helps explains why the situation is as it is.

Best wishes

<Redacted>

--------------------------------------------

Rt Hon <Redacted> MP

Member of Parliament for ....................

Lucky you. My MP for Taunton Deane, Rebecca Pow, has not yet had the decency to respond to my email of over a month ago.

[nong38]

They dont need to enter into agreements with other countries, they just need to amend clause 20 of the Pension Bill, up grade all pension to all Pensioners wherever they live.

So the budget has not made any shock waves for us at least, PA up to £11200 from April, Dividends up to £5000 free of tax. 2017/18 PA up to £11500.

[sandyf]

They dont need to enter into agreements with other countries, they just need to amend clause 20 of the Pension Bill, up grade all pension to all Pensioners wherever they live.

So the budget has not made any shock waves for us at least, PA up to £11200 from April, Dividends up to £5000 free of tax. 2017/18 PA up to £11500.

Income Tax The 2016/17 Personal Allowance increases from £10,600 to £11,000, and will further increase to £11,500 in 2017/18. Additionally, the Higher Rate tax threshold (40%) will increase from £42,385 to £43,000 in 2016/17 and again in 2017/18 to £45,000. In addition, from April 2017, there will be a £1,000 allowance against property income and a £1,000 allowance against trading income.

[sunnyjim5]

They dont need to enter into agreements with other countries, they just need to amend clause 20 of the Pension Bill, up grade all pension to all Pensioners wherever they live.

So the budget has not made any shock waves for us at least, PA up to £11200 from April, Dividends up to £5000 free of tax. 2017/18 PA up to £11500.

£11000 from April 2016.

The best quote about the budget was from Jamie Oliver yesterday:

" Its about taklin obeesihy in sociehy init !

" We want people edyouca ed not prosecu ed"

Pleased to confirm the £1100 as I have just received my tax code notification for 2016-17 from HMR&C

Written in plain English but I have complaint ! The notice extends to three pages but owing to bad formatting the third page had two "orphan" lines of print at the head of the page. Such an error will have resulted in the purchase and wast of thousands of reams of paper.

I am awaiting a reply from HMR&C which justifies their blatant wast of taxpayers money !

[nong38]

This reply from re EDM 1235 was somewhat predictable from a Cabinet Minister:

Dear Eva,

Thank you for your email about Early Day Motion 1235. You should be aware that Members of the Government do not, by convention, sign any Early Day Motions, as doing so is likely to breach the Ministerial Code's rules on collective responsibility.

With regards to the EDM, as you know, the UK state pension is payable worldwide and is uprated abroad where there is a legal requirement to do so. In some countries, however, there is no agreement with the UK for securing the social security rights of people moving between the two countries. As a result, pensioners who move to these countries still receive the state pension but do not have their payments uprated as they would be for UK residents. The Department for Work and Pensions endeavours to make this clear to those thinking of moving abroad and publishes guidance on its website.

It has been and remains the policy of successive governments not to enter into new agreements with countries or territories where this would include up-rating pensions in order to contain the long-term cost of the UK social security system. I can tell you that this issue has been examined extensively by the domestic courts, culminating in a ruling by the European Court of Human Rights in 2010. In all these cases the courts have found in favour of the Government.

I appreciate this is not what you wanted to hear, but I hope this helps explains why the situation is as it is.

Best wishes

<Redacted>

--------------------------------------------

Rt Hon <Redacted> MP

Member of Parliament for ..................

I was looking at this letter and thinking the MP has received it, assistant has dealt with by getting a researcher to pull out the standard reply, fill in the appropriate blanks and send it the sender with apologies that there is nothing they can do, like to help etc etc.

I would be tempted to engage the MP in a series of correspondence and make them take note and earn their money!

Firstly write back and say you are aware of the so called "reciprical agreement" with and unusual bunch of countries, however, all that needs to be done and you will know this as you are one of the top Members of Parliament in the House is to change clause 20 of the Pension Bill, you are aware of this Bill which is currently going through the House I am sure.

If you are in any doubt about the proposals and what needs to be done to apply fairness to ALL pensioners wherever they choose to live might I suggest that you contact the RH Sir Roger Gale ( North Thanet ).

Now I have to admit that I think that our champion in the House is the Gentleman mentioned but perhaps someone could confirm.

[sandyf]

This reply from re EDM 1235 was somewhat predictable from a Cabinet Minister:

Dear Eva,

Thank you for your email about Early Day Motion 1235. You should be aware that Members of the Government do not, by convention, sign any Early Day Motions, as doing so is likely to breach the Ministerial Code's rules on collective responsibility.

With regards to the EDM, as you know, the UK state pension is payable worldwide and is uprated abroad where there is a legal requirement to do so. In some countries, however, there is no agreement with the UK for securing the social security rights of people moving between the two countries. As a result, pensioners who move to these countries still receive the state pension but do not have their payments uprated as they would be for UK residents. The Department for Work and Pensions endeavours to make this clear to those thinking of moving abroad and publishes guidance on its website.

It has been and remains the policy of successive governments not to enter into new agreements with countries or territories where this would include up-rating pensions in order to contain the long-term cost of the UK social security system. I can tell you that this issue has been examined extensively by the domestic courts, culminating in a ruling by the European Court of Human Rights in 2010. In all these cases the courts have found in favour of the Government.

I appreciate this is not what you wanted to hear, but I hope this helps explains why the situation is as it is.

Best wishes

<Redacted>

--------------------------------------------

Rt Hon <Redacted> MP

Member of Parliament for ..................

I was looking at this letter and thinking the MP has received it, assistant has dealt with by getting a researcher to pull out the standard reply, fill in the appropriate blanks and send it the sender with apologies that there is nothing they can do, like to help etc etc.

I would be tempted to engage the MP in a series of correspondence and make them take note and earn their money!

Firstly write back and say you are aware of the so called "reciprical agreement" with and unusual bunch of countries, however, all that needs to be done and you will know this as you are one of the top Members of Parliament in the House is to change clause 20 of the Pension Bill, you are aware of this Bill which is currently going through the House I am sure.

If you are in any doubt about the proposals and what needs to be done to apply fairness to ALL pensioners wherever they choose to live might I suggest that you contact the RH Sir Roger Gale ( North Thanet ).

Now I have to admit that I think that our champion in the House is the Gentleman mentioned but perhaps someone could confirm.

Quite agree with your train of thought. They always stick this in and it gets right up my nose.

The Department for Work and Pensions endeavours to make this clear to those thinking of moving abroad and publishes guidance on its website.

When I started work and the government began taking money from earnings to provide the state pension there was no warning that discrimination would be in place when it came to retirement age, where was this guidance at that point in time.

Secondly, there was no choice in the matter, no option to put your money elsewhere and take steps to avoid this discrimination.

It really is a case of if they can get away with it , they will. Legalised fraud.

[evadgib]

This reply from re EDM 1235 was somewhat predictable from a Cabinet Minister:

Dear Eva,

Thank you for your email about Early Day Motion 1235. You should be aware that Members of the Government do not, by convention, sign any Early Day Motions, as doing so is likely to breach the Ministerial Code's rules on collective responsibility.

With regards to the EDM, as you know, the UK state pension is payable worldwide and is uprated abroad where there is a legal requirement to do so. In some countries, however, there is no agreement with the UK for securing the social security rights of people moving between the two countries. As a result, pensioners who move to these countries still receive the state pension but do not have their payments uprated as they would be for UK residents. The Department for Work and Pensions endeavours to make this clear to those thinking of moving abroad and publishes guidance on its website.

It has been and remains the policy of successive governments not to enter into new agreements with countries or territories where this would include up-rating pensions in order to contain the long-term cost of the UK social security system. I can tell you that this issue has been examined extensively by the domestic courts, culminating in a ruling by the European Court of Human Rights in 2010. In all these cases the courts have found in favour of the Government.

I appreciate this is not what you wanted to hear, but I hope this helps explains why the situation is as it is.

Best wishes

<Redacted>

--------------------------------------------

Rt Hon <Redacted> MP

Member of Parliament for ..................

I was looking at this letter and thinking the MP has received it, assistant has dealt with by getting a researcher to pull out the standard reply, fill in the appropriate blanks and send it the sender with apologies that there is nothing they can do, like to help etc etc.

I would be tempted to engage the MP in a series of correspondence and make them take note and earn their money!

Firstly write back and say you are aware of the so called "reciprical agreement" with and unusual bunch of countries, however, all that needs to be done and you will know this as you are one of the top Members of Parliament in the House is to change clause 20 of the Pension Bill, you are aware of this Bill which is currently going through the House I am sure.

If you are in any doubt about the proposals and what needs to be done to apply fairness to ALL pensioners wherever they choose to live might I suggest that you contact the RH Sir Roger Gale ( North Thanet ).

Now I have to admit that I think that our champion in the House is the Gentleman mentioned but perhaps someone could confirm.

Rest assured I have enlightened the author many times since he gained his seat in the 90's. Following the APPC along with supporting the consortium enables me to keep up with Sir Roger etc too

[evadgib]

Budget 2016: some of the things we've announced

[denby45]

One of the things they mentioned in this budget was the phasing out of class 2 NI contributions. They have announced this measure without disclosing how it will be replaced. They suggest it will be incorporated with class 4 but how will that work. They don't mention anything. Why don't they fill in the details before they make these announcement so people will know how they stand. I currently pay class 2 as voluntary contributions, by direct debit hoping to get to 35 years before I am 66.

Den

[sandyf]

One of the things they mentioned in this budget was the phasing out of class 2 NI contributions. They have announced this measure without disclosing how it will be replaced. They suggest it will be incorporated with class 4 but how will that work. They don't mention anything. Why don't they fill in the details before they make these announcement so people will know how they stand. I currently pay class 2 as voluntary contributions, by direct debit hoping to get to 35 years before I am 66.

Den

I was self employed and paid Class 2 every 13 weeks. Class 4 is payable on profits and calculated when you do the accounts.

If they were to cancel Class 2 then I would suspect they would just collect what had been due along with any Class 4 that was due. If I was a bit more cynical I would see it as a good opportunity to disguise a rise in rates.

I believe at the moment voluntary contributions can be paid as either Class 2 or Class 3, depending on circumstances, and may well become just Class 3.

"It may be possible to pay voluntary Class 3 National Insurance contributions (Class 2 if you’re self-employed or possibly if you’re living abroad) in order to get a higher State Pension."

[transam]

I see Ian Duncan Smith has resigned.............

[denby45]

One of the things they mentioned in this budget was the phasing out of class 2 NI contributions. They have announced this measure without disclosing how it will be replaced. They suggest it will be incorporated with class 4 but how will that work. They don't mention anything. Why don't they fill in the details before they make these announcement so people will know how they stand. I currently pay class 2 as voluntary contributions, by direct debit hoping to get to 35 years before I am 66.

Den

I was self employed and paid Class 2 every 13 weeks. Class 4 is payable on profits and calculated when you do the accounts.

If they were to cancel Class 2 then I would suspect they would just collect what had been due along with any Class 4 that was due. If I was a bit more cynical I would see it as a good opportunity to disguise a rise in rates.

I believe at the moment voluntary contributions can be paid as either Class 2 or Class 3, depending on circumstances, and may well become just Class 3.

"It may be possible to pay voluntary Class 3 National Insurance contributions (Class 2 if you’re self-employed or possibly if you’re living abroad) in order to get a higher State Pension."

I agree but I am not working and just pay the class 2 anyway to get the 35 years. you are not being cynical with your assumption and it certainly looks to me like they will be forcing living abroad guys to pay the class 3 voluntary. Much more money in their coffers of course and another slap in the face for us.

The rates for the 2015 to 2016 tax year are:

• £2.80 a week for Class 2
• £14.10 a week for Class 3

Den

[jpinx]

One of the things they mentioned in this budget was the phasing out of class 2 NI contributions. They have announced this measure without disclosing how it will be replaced. They suggest it will be incorporated with class 4 but how will that work. They don't mention anything. Why don't they fill in the details before they make these announcement so people will know how they stand. I currently pay class 2 as voluntary contributions, by direct debit hoping to get to 35 years before I am 66.

Den

I was self employed and paid Class 2 every 13 weeks. Class 4 is payable on profits and calculated when you do the accounts.

If they were to cancel Class 2 then I would suspect they would just collect what had been due along with any Class 4 that was due. If I was a bit more cynical I would see it as a good opportunity to disguise a rise in rates.

I believe at the moment voluntary contributions can be paid as either Class 2 or Class 3, depending on circumstances, and may well become just Class 3.

"It may be possible to pay voluntary Class 3 National Insurance contributions (Class 2 if you’re self-employed or possibly if you’re living abroad) in order to get a higher State Pension."

I agree but I am not working and just pay the class 2 anyway to get the 35 years. you are not being cynical with your assumption and it certainly looks to me like they will be forcing living abroad guys to pay the class 3 voluntary. Much more money in their coffers of course and another slap in the face for us.

The rates for the 2015 to 2016 tax year are:

• £2.80 a week for Class 2
• £14.10 a week for Class 3

Den

Agreed - and very typical of the "hidden costs" of the revisions

[evadgib]

One of the things they mentioned in this budget was the phasing out of class 2 NI contributions. They have announced this measure without disclosing how it will be replaced. They suggest it will be incorporated with class 4 but how will that work. They don't mention anything. Why don't they fill in the details before they make these announcement so people will know how they stand. I currently pay class 2 as voluntary contributions, by direct debit hoping to get to 35 years before I am 66.

Den

I was self employed and paid Class 2 every 13 weeks. Class 4 is payable on profits and calculated when you do the accounts.

If they were to cancel Class 2 then I would suspect they would just collect what had been due along with any Class 4 that was due. If I was a bit more cynical I would see it as a good opportunity to disguise a rise in rates.

I believe at the moment voluntary contributions can be paid as either Class 2 or Class 3, depending on circumstances, and may well become just Class 3.

"It may be possible to pay voluntary Class 3 National Insurance contributions (Class 2 if youre self-employed or possibly if youre living abroad) in order to get a higher State Pension."

I agree but I am not working and just pay the class 2 anyway to get the 35 years. you are not being cynical with your assumption and it certainly looks to me like they will be forcing living abroad guys to pay the class 3 voluntary. Much more money in their coffers of course and another slap in the face for us.

The rates for the 2015 to 2016 tax year are:

• £2.80 a week for Class 2
• £14.10 a week for Class 3

Den

Is it possible to purchase 5 years at this class 2 rate online? I'd rather do that than pay whatever new rate they come up with from April.

[nong38]

I see Ian Duncan Smith has resigned.............

Very sad, I thought he was an honourable man, obviously not part of the "Elite" and no doubt upset a few people, clearly was not aware of some of the things that were is the budget, to embarrass him perhaps as a member of the Brexit group?

[denby45]

One of the things they mentioned in this budget was the phasing out of class 2 NI contributions. They have announced this measure without disclosing how it will be replaced. They suggest it will be incorporated with class 4 but how will that work. They don't mention anything. Why don't they fill in the details before they make these announcement so people will know how they stand. I currently pay class 2 as voluntary contributions, by direct debit hoping to get to 35 years before I am 66.

Den

I was self employed and paid Class 2 every 13 weeks. Class 4 is payable on profits and calculated when you do the accounts.

If they were to cancel Class 2 then I would suspect they would just collect what had been due along with any Class 4 that was due. If I was a bit more cynical I would see it as a good opportunity to disguise a rise in rates.

I believe at the moment voluntary contributions can be paid as either Class 2 or Class 3, depending on circumstances, and may well become just Class 3.

"It may be possible to pay voluntary Class 3 National Insurance contributions (Class 2 if youre self-employed or possibly if youre living abroad) in order to get a higher State Pension."

I agree but I am not working and just pay the class 2 anyway to get the 35 years. you are not being cynical with your assumption and it certainly looks to me like they will be forcing living abroad guys to pay the class 3 voluntary. Much more money in their coffers of course and another slap in the face for us.

The rates for the 2015 to 2016 tax year are:

• £2.80 a week for Class 2
• £14.10 a week for Class 3

Den

Is it possible to purchase 5 years at this class 2 rate online? I'd rather do that than pay whatever new rate they come up with from April.

Thanks I wasn't aware of that. The only one I am aware of is the ability to back pay six years of contributions. I already did that so that's not an option for me. If I can pay 5 years in advance then I will certainly do that. Do you have a link?

Den

[evadgib]

I was asking you

[steve187]

class 2 contributions are to be abolished but at the moment they are unsure when, or what system will replace it. - https://www.gov.uk/government/consultations/consultation-on-abolishing-class-2-national-insurance-and-introducing-a-contributory-benefit-test-to-class-4-national-insurance-for-the-self-employed/the-abolition-of-class-2-national-insurance-introducing-a-benefit-test-into-class-4-national-insurance-for-the-self-employed

[denby45]

I was asking you

OOPS My bad sorry. May be wrong but I don't think you can.

Den

[sandyf]

class 2 contributions are to be abolished but at the moment they are unsure when, or what system will replace it. - https://www.gov.uk/government/consultations/consultation-on-abolishing-class-2-national-insurance-and-introducing-a-contributory-benefit-test-to-class-4-national-insurance-for-the-self-employed/the-abolition-of-class-2-national-insurance-introducing-a-benefit-test-into-class-4-national-insurance-for-the-self-employed

The main problem with the removal of Class 2 is how to transfer benefit entitlement from Class 2 to Class 4, at the moment there is no benefit entitlement from Class 4 NI.

The issue of topping up state pension via Class 2 contributions is effectively a secondary matter of fairly minor importance. Your reference appears to be fairly clear on where that will go.

"While the Government recognises that the rate of Class 3 contributions is higher than Class 2 contributions, those for whom Class 3 may be prohibitively expensive may be eligible to claim means-tested benefits, which would protect their State Pension record via NI credits."

[Harry2]

class 2 contributions are to be abolished but at the moment they are unsure when, or what system will replace it. - https://www.gov.uk/government/consultations/consultation-on-abolishing-class-2-national-insurance-and-introducing-a-contributory-benefit-test-to-class-4-national-insurance-for-the-self-employed/the-abolition-of-class-2-national-insurance-introducing-a-benefit-test-into-class-4-national-insurance-for-the-self-employed

The main problem with the removal of Class 2 is how to transfer benefit entitlement from Class 2 to Class 4, at the moment there is no benefit entitlement from Class 4 NI.

The issue of topping up state pension via Class 2 contributions is effectively a secondary matter of fairly minor importance. Your reference appears to be fairly clear on where that will go.

"While the Government recognises that the rate of Class 3 contributions is higher than Class 2 contributions, those for whom Class 3 may be prohibitively expensive may be eligible to claim means-tested benefits, which would protect their State Pension record via NI credits."

The abolition of Class 2 possibly from April 2017 is big news. I have been paying these for some 10 years, paying Class 3 is some 5 times as much pa. I saw no mention in that consultative document about the effect on expats.

[Harry2]

Found some more details on Class 2 abolition date, apparently announced in last weeks Budget:

"Class 2 National insurance contributions are to be abolished with effect from April 2018. Where expats have been making this class of payments, often as advised by HMRC on leaving the UK, they will now pay Class 3A. These are voluntary contributions but allow individuals to continue to build entitlement to the UK Basic Pension."

http://financialuae.me/2016/03/17/uk-budget-march-2016-what-expats-need-to-know/