Pension entitlement is assessed on the eligibility conditions applicable on the date an individual reaches pension age. State pension age will increase to 67 in 2021. As the person concerned was born in 1955 they will reach pension age in 2022.
For those who reach state pension age since September 2012, two different methods of calculating entitlement to a contributory state pension are used, the yearly averaging (YA) approach used since the inception of the contributory pension in 1961 and an interim total contributions approach (TCA). The customer receives the higher rate of the two calculations.
Future pension entitlement will likely depend on factors such as a person’s social insurance record, their attachment to the workforce, and their countries of employment. It is advisable that all contributors maintain their social insurance record over their working life.
The National Pensions Framework (2010) announced that the Government would introduce a new method for calculating State pension (contributory). It proposed that the yearly averaging system will be replaced with a TCA which would make the level of pension paid directly proportionate to the number of social insurance contributions made by a person over their working life. The implementation of the TCA is subject to the necessary legislation being enacted and supporting structures in place.
I have arranged for a copy of their social insurance contribution record to issue to the person concerned. They should apply for State pension (contributory) approximately 6 months before reaching pension age. Their entitlement to pension will then be determined on the basis of the eligibility conditions in force and they will be notified in writing of the decision.
I hope this clarifies the matter for the Deputy.