Category of Pension

Dataset: State Pension caseload

Field: Category of Pension

Description

The type and amount of State Pension (SP) a person receives is determined according to when the person reaches State Pension age (SPa) and the number of National Insurance (NI) qualifying years they have, subject to them also having satisfied any other qualifying conditions in force at the time they reach SPa.

Classification

Pre-2016 State Pension

This is paid to people reaching their State Pension age (SPa) prior to 6th April 2016.

There are two main types of SP: contributory and non-contributory. Contributory SP consists of any combination of a Basic Pension, Additional Pension or Graduated Retirement Benefit. Non-contributory SP consists of a Basic Pension plus any Graduated Retirement Benefit that is due.

Additional Pension (AP) is made up of any entitlement, or inherited entitlement, of State Earnings-Related Pension (SERPS), which was earned on qualifying earnings between 1978 and 2002, and State Second Pension, which was earned on qualifying earnings between 2002 and 2016.

Graduated Retirement Benefit (GRB) is made up of any entitlement, or inherited entitlement, due under the scheme which operated from 1961 to 1975.

The categories of contributory SP available are:

Cat A - category A pensions, comprising basic and additional pensions, are paid to individuals based upon their qualifying NI contributions. In certain circumstances, spouses and civil partners were able to inherit these when the principal recipient died.
Cat B - category B pensions, comprising basic and additional pensions, are paid to the surviving spouses and civil partners of deceased category A recipients where the survivor is not entitled to category A pension.
Cat ABL - category ABL pensions are paid to married persons and civil partners when a person’s own category A basic pension is less than the maximum amount payable and they are able to ‘top up’ using their spouse or civil partner’s NI contributions.
Cat BL - category BL pensions are paid when a person has no category A basic pension entitlement but can claim an SP using their spouse or civil partner’s NI contributions.
Cat AB - category AB pensions are paid when a person’s own category A basic or additional pension is less than the maximum amount payable and they are able to ‘top up’ using their deceased spouse or civil partner’s NI contributions.
GRB only

The categories of non-contributory SP are:

Cat C - category C pensions are payable to people over SPa on 5th July 1948 and their widows – the only remaining entitlements are payable to widows.
Cat D - category D pensions are awarded to people who:

reach 80 years of age
satisfy certain residency conditions and

failed to qualify for category A or B pension or
receive less by way of basic pension than the rate of Category D pension.

New State Pension

This is paid to people reaching SPa on, or after, 6th April 2016.

nSP is a contributory SP made up of an amount based upon the persons NI contributions. Where transitional arrangements apply, some individuals will receive a Protected Payment – which is an amount above the full rate of nSP.

For those of working-age in 2016, their National Insurance record to 6th April 2016 will be valued under the old scheme rules and under the new scheme rules. Whichever amount is higher will be their Starting Amount from April 2016 in the new system. If the Starting Amount is higher than the full rate of nSP the excess becomes the Protected Payment.

The categories of nSP available are:

New State Pension (with no protected payment)
New State Pension (with protected payment)

Note that where an individual is entitled to an extra amount in respect of inherited or shared SP, this is not shown separately. Where the total, including the extra amount, is below the full rate of nSP it is classified as nSP with no Protected Payment. Where the total exceeds the full rate of nSP, it is classified as nSP with Protected Payment.

There is also a category for Unknown.

Total number of categories: 11