The effect of the new Single Tier State Pension on Public Sector workers

Martin Astle, Director and Solicitor in Astle Paterson’s Family Department discusses the potential risk to public sector employees from the new State Pension rules.

Martin said “Public Sector employees (e.g. Doctors, Nurses and Teachers etc.) should be vigilant about their entitlement to State Pension under the new Rules which come into force in April 2016.

Under the old Rules you were broadly entitled to the basic State Pension.

Under the New Rules the entitlement to the State Pension is based upon a build-up of contributions.

That build-up may not occur – particularly where there is a contracted out pension scheme in operation.  This will have a particular application to those in the NHS or Teachers Pension Schemes.

It will affect all other Public Sector Employees where there are contracted out arrangements.”

Martin concluded “The moral of the story is that if you are employed in the Public Sector and have contracted out pension arrangements then you need to be vigilant to ensure that your contributions to the State Pensions are building up at a rate to ensure you ultimately receive a full State Pension.”

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