Written evidence from Michael Mansfield (USP0004)

I am 62 and have worked since I was 17 in the UK and towards the end of my working life in Belgium and Spain for a few years as an IT consultant. In all locations I have paid into the relevant State Pension system. I now live in Spain.

Between 1979 and and 1994 I worked for TSB and enrolled in their opted out Occupational Pension Scheme 2. Apart from that period all my other contributions were at full rate.

I have continued to pay class 2 contributions whilst in Spain to maintain a full contribution record. However after I made an enquiry with the Overseas Pension office regarding the cancellation of my payments I was informed that they had stopped the payments as I had reached the maximum years.

Subsequently I requested a written statement that the department had stopped my contributions and that my pension contributions were paid in full. I then received a forecast. One of many I have requested. I attach these for your examination.

My most recent estimation is based on the new criteria and the announced headline Pension of £151.25 pw.

The estimation is based on my contribution record of 39 qualifying years. There now appears to be deductions for the opted out part of my career at TSB which reduces my pension but does not state how this is calculated.

My wife also died several years ago and they are unwilling to advise me on what the situation is regarding use of her contributions to my final figure. The department just sent me a repeat of the previous estimation document.

I was also verbally advised that I cannot make any further contributions in my remaining years to offset any reductions as I am fully paid up yet it appears I will be receiving a reduced pension !

They are also unwilling to advise if my 4 years Spanish contributions and 1 year Belgium contributions add any value to the final figure.

Therefore to surmise the advisory department is not providing a full and frank breakdown of my pension forecast and I have no viable options to either make further contributions or lump sums before I retire. So in effect I am locked out of my own State Pension.

Yet I believe that a person who has never worked and claimed benefits all their working life can enjoy a full pension at £151.25 pw , yet after 39 years contributions I cannot !

I also have not received any correspondence or advice about the widower’s situation and my wife’s contributions and if they have any influence on my final pension. They ask me to reapply for a derived forecast but that has already been sent twice without these calculations taken into consideration.

I have followed all the rules within my working life and now feel betrayed at the final hurdle. There is a slight of hand going on here of which I feel robbed of the full headline entitlement.

Although I now receive my TSB occupational pension I feel that the manner on which this Pension change has been introduced is totally misleading. There appears to be no options to rectify contributions gaps and no detail as to what happens to my EU contributions and widowers wife’s contributions etc. This leaves my final retirement plans in disarray.

I have even heard a rumour that they are deducting a greater percentage of opted out years than the actual years. If this is the case then it is a scandal.

It appears that the only people who will receive the headline figure are people who have lived a life on benefits.

Can you see what else I could have done to achieve the headline State Pension figure ?

October 2015