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.