The Chancellor announced today that from October 2015, eligible individuals will be able to pay the new voluntary Class 3A National Insurance Contributions. As yet no rate for this new class of contribution has been announced but it will be set at an actuarial rate.
Under the current system, any individual who reaches state pension age before the introduction of the new single tier pension, continues to accrue entitlement under the existing rules whereby the basic state pension is £110.15 per week. This top-up scheme will be opened in October 2015 and will enable certain pensioners and individuals who will reach state pension age before 6 April 2016 to buy increased entitlement to the state pension.
This measure will be welcomed by those pensioners frozen out of the new single tier pension which is to be set at £144 per week and which applies only for those retiring after 6 April 2016.