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Old 27.08.2017, 13:43
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UK State Pension and Swiss contributions

Hello everyone,

I know that pensions are a very complicated area but I wonder if anyone has insight on the following:

Background:

- I have worked 10 years out of the UK (in Qatar and Singapore) and now am in Switzerland. I paid National Insurance in the UK, then voluntary contributions for those past 10 years, and currently still doing so.

- I have just joined the Swiss pension system with all that entails.

- My National Insurance record in regards to the State Pension is fully paid up to date, and I can see from HMRC projection that I need to keep paying the remaining years in order to qualify for a full UK state pension on retirement (I am currently 40 years of age).

- I am keen to make sure that my UK State Pension benefit will not be hindered. From 'third countries' such as the Middle East and Asia, I was able to keep this up to date, but apparently the situation is different when in the UK.

So my question is: will my contributions made to the Swiss system count towards 'contributing years' in the UK? And if so, how do I do that? I understand the voluntary payments for National Insurance are no longer required. But I would rather not take chances and cancel them unless I can be certain that years spent in CH will contribute to the UK State Pension.

Thanks for any advice or knowledge. It's complicated, and searching online doesn't bring a lot of clarity.
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Old 27.08.2017, 13:53
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Re: UK State Pension and Swiss contributions

Contributions to the Swiss state pension system go towards a pension which Switzerland will pay out as a state pension when you retire.

Contributions to a Swiss employer pension scheme go towards a pension which a Swiss employer can pay out to you when you reach retirement age here. If you leave before you reach retirement age you may be able to withdraw the employment pension in cash. Certain conditions though have to be met to be able to do this.
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Old 27.08.2017, 13:56
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Re: UK State Pension and Swiss contributions

No, they don't contribute to the UK State pension, why would they?

Actually it's quite clear:

"Working in the EEA

If you work in another country in the EU or EEA, what you need to do depends on your situation. The same rules apply to Switzerland.

If you work for an employer in the EEA

You’ll normally pay social security contributions in the EEA country you work in instead of National Insurance. This means:

• you’ll be covered by that country’s social security laws and may be entitled to benefits there
• your entitlement to benefits in the UK (for example State Pension) may be affected as there’ll be a gap in your National Insurance contributions"

https://www.gov.uk/national-insurance-if-you-go-abroad

What will happen is that eventually you'll be able to claim both your UK and Swiss pensions. I recently started getting my Swiss pension, having started the UK one a year or so earlier (due to different age requirements).

So if you want to get a full UK pension you need to continue paying in voluntarily.
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Old 27.08.2017, 13:58
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Re: UK State Pension and Swiss contributions

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So if you want to get a full UK pension you need to continue paying in voluntarily.
And if you cease paying into the UK system, you will probably get the minimum pension from the UK.
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Old 27.08.2017, 14:16
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Re: UK State Pension and Swiss contributions

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And if you cease paying into the UK system, you will probably get the minimum pension from the UK.
UK state pension is based on the no of years contributions, for a full pension you need to have paid or have credits for 35 years full years. Contributions of less than 10 years get nothing.
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Old 27.08.2017, 14:22
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Re: UK State Pension and Swiss contributions

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UK state pension is based on the no of years contributions, for a full pension you need to have paid or have credits for 35 years full years. Contributions of less than 10 years get nothing.
But those in between 10 and 35 years do get something. And if the individual only just scrapes past the 10 year post, they will get the minimum, this was my point.
Moreover there are exceptions to the 10-year rule. Some people with less than 10 years worth of contributions can still get the minimum UK state pension.
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Old 27.08.2017, 14:23
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Re: UK State Pension and Swiss contributions

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UK state pension is based on the no of years contributions, for a full pension you need to have paid or have credits for 35 years full years. Contributions of less than 10 years get nothing.
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But those in between 10 and 35 years do get something. And if the individual only just scrapes past the 10 year post, they will get the minimum, this was my point.
Moreover there are exceptions to the 10-year rule. Some people with less than 10 years worth of contributions can still get the minimum UK state pension.
They need 10 years of CREDITS or Payments, not less under ANY circumstances.

It's proportional to years of contributions.
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Old 27.08.2017, 14:28
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Re: UK State Pension and Swiss contributions

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They need 10 years of CREDITS or Payments,
That was exactly my point.
People who have less than 10 years worth of contributions do qualify.
They simply have to have some credits as well.
I know because I am in this exact category myself.
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Old 27.08.2017, 14:50
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Re: UK State Pension and Swiss contributions

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That was exactly my point.
People who have less than 10 years worth of contributions do qualify.
They simply have to have some credits as well.
I know because I am in this exact category myself.
I mentioned credits in my original statement......... Why where you correcting me (twice now) when I copped my original statement with my last reply? It just created confusion.

Anyone who was in education after the age of 16 will have credits as will any mother of a baby, credits are very common.
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Old 27.08.2017, 15:01
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Re: UK State Pension and Swiss contributions

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I mentioned credits in my original statement......... Why where you correcting me (twice now) when I copped my original statement with my last reply? It just created confusion.

Anyone who was in education after the age of 16 will have credits as will any mother of a baby, credits are very common.
Sorry I missed the credit part when it was originally posted. I just most was alarmed about the 10-year rule, as I have been told twice by the UK that I am alright and I will get a minimum UK state pension. .

I only have several full years contributions as well as several partial years contributions and do not reach the 10 years minimum through employment alone. I do however have plenty of credits thankfully, which takes me to over 10 years and continues to increase.
I doubt though that I can get more than the minimum.
But since I will get a Swiss one (well two actually, as there is also the employment one), then of course I am not really expecting much from the UK as the two systems in comparison are worlds apart.
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Old 27.08.2017, 15:08
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Re: UK State Pension and Swiss contributions

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Sorry I missed the credit part when it was originally posted. I just most was alarmed about the 10-year rule, as I have been told twice by the UK that I am alright and I will get a minimum UK state pension. .

I only have several full years contributions as well as several partial years contributions and do not reach the 10 years minimum through employment alone. I do however have plenty of credits thankfully, which takes me to over 10 years and continues to increase.
I doubt though that I can get more than the minimum.
But since I will get a Swiss one (well two actually, as there is also the employment one), then of course I am not really expecting much from the UK as the two systems in comparison are worlds apart.
You would do well to check your contributions online https://www.gov.uk/check-state-pension . You need full year's so 52 weeks, 51 weeks would be incomplete & not count, however shortfalls can be paid retrospectively if not to much time has passed. Paying voluntary contributions is a pretty good deal. I paid for 20 years after leaving the UK.
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Old 27.08.2017, 15:31
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Re: UK State Pension and Swiss contributions

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You would do well to check your contributions online https://www.gov.uk/check-state-pension . You need full year's so 52 weeks, 51 weeks would be incomplete & not count, however shortfalls can be paid retrospectively if not to much time has passed. Paying voluntary contributions is a pretty good deal. I paid for 20 years after leaving the UK.
Thank you. I registered on the site a few months ago. I have been in touch with UK authorities on this as well as I currently receive payments from the UK and am in receipt of NI credits.
I am fully aware that 51 weeks worth of contributions is not a full year.
The discussion is no longer relevant for me as I am based here and am under the Swiss system (pillars 1 and 2). The UK payments are quite low compared to what we get here.
I do know though that I have more than 10 valid UK years already and this continues to go up via the credits.
The full and incomplete years of contributions are no longer relevant.
My aim was simply to assure the minimum, which I have done. I would not expect any more from the UK.
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Old 27.08.2017, 15:57
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Re: UK State Pension and Swiss contributions

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Thank you. I registered on the site a few months ago. I have been in touch with UK authorities on this as well as I currently receive payments from the UK and am in receipt of NI credits.
Unless you are retired, I have no idea what your talking about, I suspect you don't know either.
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Old 27.08.2017, 16:02
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Re: UK State Pension and Swiss contributions

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Unless you are retired, I have no idea what your talking about, I suspect you don't know either.
I'm not quite sure what you're getting at. My post maybe was too vague.
I receive benefits from the UK.
NI class 1 credits accrue meanwhile in the pension system there automatically.
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Old 27.08.2017, 16:07
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Re: UK State Pension and Swiss contributions

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I'm not quite sure what you're getting at. My post maybe was too vague.
I receive benefits from the UK.
NI class 1 credits accrue meanwhile in the pension system there automatically.
If you live in CH, unless it's OAP/ widows/er pension your on the fiddle.
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Old 27.08.2017, 16:18
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Re: UK State Pension and Swiss contributions

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If you live in CH, unless it's OAP/ widows/er pension your on the fiddle.
Actually that isn't so. Having worked in the UK as well, you can receive benefits from there even whilst not living there. No fiddle. They wrote to me! Apparently it was the Swiss system that wrote to them. I had no idea I was entitled to anything from the UK, it would never have entered my mind.
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Old 27.08.2017, 16:32
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Re: UK State Pension and Swiss contributions

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Hello everyone,

I know that pensions are a very complicated area but I wonder if anyone has insight on the following:

Background:

- I have worked 10 years out of the UK (in Qatar and Singapore) and now am in Switzerland. I paid National Insurance in the UK, then voluntary contributions for those past 10 years, and currently still doing so.

- I have just joined the Swiss pension system with all that entails.

- My National Insurance record in regards to the State Pension is fully paid up to date, and I can see from HMRC projection that I need to keep paying the remaining years in order to qualify for a full UK state pension on retirement (I am currently 40 years of age).

- I am keen to make sure that my UK State Pension benefit will not be hindered. From 'third countries' such as the Middle East and Asia, I was able to keep this up to date, but apparently the situation is different when in the UK.

So my question is: will my contributions made to the Swiss system count towards 'contributing years' in the UK? And if so, how do I do that? I understand the voluntary payments for National Insurance are no longer required. But I would rather not take chances and cancel them unless I can be certain that years spent in CH will contribute to the UK State Pension.

Thanks for any advice or knowledge. It's complicated, and searching online doesn't bring a lot of clarity.
Learn to use the forum search function. This topic has been addressed multiple times and it is better to add to an existing thread than start a new one with duplicate information.
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Old 28.08.2017, 10:18
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Re: UK State Pension and Swiss contributions

For the time being. The 2 state pensions are separate.

Each year or credit to the UK state pension is 1/35th of the maximum amount, 155 quid a week or something currently.

Like wise, in Switzerland, assuming you pay or are entitled to the max amount, each year is like 1/45th of what ever you are entitled to, so perhaps 2,300 CHF a month.

And from what I understand, you receive two amounts, although it is administered through one country, this is only what I have heard. But if you retired back in the UK. The Swiss pension system would pay your money to the UK, and the UK system would, lets say, pay you 155 a week plus 2,300chf a month. You wouldnt get that payment from the Swiss directly.

You should investigate if you are paying the cat 2 national insurance contributions, as these are £150 a year rather than 700 +/-. And of course, remember that this is all as things are today, so all could change in 25-30 years.
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Old 28.08.2017, 11:03
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Re: UK State Pension and Swiss contributions

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Contributions to the Swiss state pension system go towards a pension which Switzerland will pay out as a state pension when you retire.

Contributions to a Swiss employer pension scheme go towards a pension which a Swiss employer can pay out to you when you reach retirement age here. If you leave before you reach retirement age you may be able to withdraw the employment pension in cash. Certain conditions though have to be met to be able to do this.
Just to be clear, the bit in red is wrong - the pension has nothing to do with the Swiss employer other than them paying in to it. The pension is a separate fund administered independently under the pension rules.
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Old 28.08.2017, 11:12
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Re: UK State Pension and Swiss contributions

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Just to be clear, the bit in red is wrong - the pension has nothing to do with the Swiss employer other than them paying in to it. The pension is a separate fund administered independently under the pension rules.
Unless it is an internal pension fund that belongs to the same group. Sorry, mine is like this so I forget that others may have it as an external thing...
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