| MP Finds Pensions 'Loophole' |
| Thursday, 29 May 2008 | |
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With price hikes in fuel and food continuing to hit local people's wallets, Southport's MP believes he has uncovered a flaw in the National Insurance system which could see some people receiving a timely boost to their state pensions.
Research conducted by the Liberal Democrats in Parliament has discovered a flaw in the way payments to married women of a certain age are calculated, and John Pugh is now urging local women to take the time to ensure they are receiving everything they are entitled to. The problem concerns Home Responsibilities Protection (HRP), which was introduced in 1978-79 to protect the pensions of women who had taken time out of their jobs to care for children. Under current rules, a woman needs to have paid National Insurance for 39 years in order to receive a full pension. Entitlement to HRP however reduces the number of years needed, and Dr Pugh is concerned that in some cases this is not being calculated correctly. Women paying the Married Woman's Stamp did not qualify for HRP, though once they were out of employment for more than two years (post 1978 - when HRP was introduced) their eligibility to pay the stamp should have lapsed. A recently uncovered Government mix-up in the recording of National Insurance payments however meant that this did not always happen. Women who spent more than two years out of paid work (or earned too little to be liable for NI) after 1978 in order to be at home bringing up children should therefore check to see if they are receiving HRP. Thousands of women nationwide have already received a boost to their state pension after finding they were being underpaid. After this was brought to the Government's attention in Parliament, they announced plans to begin trawling through records to identify the women who are missing out. Dr Pugh however believes this process "could take years", and is urging local women to check their pensions without delay: "The way this is calculated is highly complex, but this shouldn't put people off from checking to see they are receiving the money which they rightfully deserve" commented the MP this morning. "Anyone who remembers paying the Married Woman's Stamp should check to see if they are entitled to HRP, and check to see if they are receiving it. Thousands of women across the country have managed to claim back money they are rightfully entitled to, and many have seen the level of their annual state pension adjusted by a significant degree." Dr Pugh was keen to stress that anyone confused by the complex eligibility requirements could contact him for further details and advice: "This is a complex situation - the fact that the calculations involved are so complex is why so much money has been going unclaimed. Anybody who thinks they might be missing out however should get in touch with me without delay - it's better to check than risk losing out on money you're rightfully entitled to." Do you qualify? Download our factsheet |