Refund of Voluntary Contributions

The Pensions Act 2007 became law on 26 July 2007 and there are some very important changes that you should be aware of.

The changes, concerning refunds of voluntary contributions, will primarily affect those who reach State Pension age on or after 06 April 2010.

Earlier this year HM Revenue and Customs advised that contributors may be entitled to a refund if they have continued to make voluntary National Insurance contributions since 25 May 2006, but were unaware of the Government’s intention to reduce the number of qualifying years required for a full basic State Pension.

HM Revenue & Customs is now in a position to provide more details about the administrative arrangements for making refunds. Refunds are available to those who meet the following criteria:

• reach State Pension age on or after 6 April 2010;
• paid voluntary contributions on or after 25 May 2006 (the date the Pension White Paper was published) but before 26 July 2007; and
• were not aware of the changes when they paid. This means that at the time they paid they had not received information from HM Revenue & Customs about the changes.

If you believe these changes may affect you and you could be entitled to a refund it’s vital you contact us as soon as possible to ensure you receive any money which is due”