Modification - Further information
What was the reduction in National Insurance contributions up to March 1980?
During employment up to 31 March 1980 national insurance contributions were reduced, at the rate of 5p a week for men (22p a month) and 6p a week for women (25p a month) and as a result pensions covering this period are slightly reduced.
When did modification cease?
Since 1 April 1980. This means that scheme pensions will be reduced from age 65 for men and age 60 for women only in respect of service occurring up to 31 March 1980.
Who is affected by modification?
Depending on your date of entry to pensionable employment you will be affected by modification as follows:
- Entry between 1 March 1948 and 31 March 1980.
You will have paid reduced national contributions up until 31 March 1980. Your annual pension will be reduced, from age 65 for men and age 60 for women, by an amount not exceeding £1.70 for each year of service before 1 April 1980 and proportionately for a part year. Any added years being purchased or any enhancement of service awarded are ignored for the calculation. For example, a male member entering pensionable employment on 1 April 1950 at age 19 would have his annual pension reduced, from age 65, by (30 x £1.70) or £51 per annum.
- Entry on or after 1st April 1980
Full national insurance contributions are payable and there is no reduction of United Kingdom Atomic Energy Authority pension benefits at State retirement age. If you entered the United Kingdom Atomic Energy Authority scheme on or after 1 April 1980 bringing a transfer value from another scheme, the whole of your service credit granted in the United Kingdom Atomic Energy Authority scheme will be unmodified even though the pension arising under the previous scheme may have been modified. This may cause a slight reduction of your back service credit.
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