NIC shortfall

[UKSBD]

A couple of years ago my wife got a letter about her shortfall in NIC
(she didn't work for about 10 years)
Basically it said if she made a payment for this period within the next 5
years or so it covered her shortfall.

I read in the paper today that the number of years you have to work to
get state pension is being reduced from 44 years to 30 years from April.

Does this mean it is pointless paying the lump sum to cover the shortfall
(as there won't be one now)

[Atilla]

Yes.
At least that's how the fella at HMRC explained it to me.

[UKSBD]

Any idea how long they have known it was changing?
Would they have deliberatly sent the letter out a couple of years ago
to make her pay, even though it looks as though there is no advantage to.

[Atilla]

They're short of money...and not reknowned for charity.
They certainly knew about it middle of last year. Can't comment on whether they knew a couple or so years ago.

[RAL]

Any idea how long they have known it was changing?


I have known at least for a year. I commented on the same in this post (http://www.ukbusinessforums.co.uk/forums/showthread.php?t=99428&highlight=PENSION&page=2) in April-09.

[UKSBD]

Thanks,
does this mean we can basically ignore the letter about the NIC shortfall
and not bother paying the lump sum?

[Spongebob]

How old is your wife? I believe this has some relevence.


If that's her in your avatar then you're fine...


...if that's your daughter (or granddaughter) then it may be a problem!

[UKSBD]

She is 37, has about 8 years worth of NIC (plus 5 years that she wasn't
working she was receiving child benefit, which I believe entitles those years to be counted towards her NIC?)
She only has to work another 20 years or so to get the full 30 years in
now, so I can't really see the point in paying the shortfall any more.