• Comprises of a Basic State Pension (BSP) and possibly an Additional State
• The BSP is a non-means tested benefit, payable from SPA to the employed, self-employed and other individuals who have been credited with sufficient National Insurance contributions (NICs).
• Known as Category A, the full single person’s BSP for 2018/19 is £125.95 per week with at least 30 qualifying years of NIC.
• If an individual had less than 30 qualifying years, they will get a fraction of the BSP, ie 25 qualifying years would mean 25/30^ths of the BSP would be available.
• Where the following individuals had reached SPA before 6 April 2016, they may also have qualified for a Category A pension:

– a divorcee who can use the qualifying years of their former spouse;

– a widow who is not entitled to a Widow’s Pension or bereavement benefits; and

– a widow or widower entitled to long-term incapacity benefit.

• Known as category B, a dependent (who may be a husband, wife or civil partner) who reached SPA with less than 18 qualifying years may have been able to claim an additional income known as a ‘Category B’
• The full rate of Category B pension for 2018/19 is £75.50 per week but this was only paid where the spouse or civil partner whose NIC record was being used was entitled to a full Category A pension when they reached their SPA
• So, for example, if they were only entitled to 90% of the full Category A pension then the maximum category B pension payable would be 90% of the maximum, i.e. 90% × £75.50 in 2018/19).
• It is possible for someone who reached SPA before 6 April 2016 to receive both a Category A pension and a Category B pension

Additional state pension:

• Not available for self-employed people
• Paid in addition to the BSP
• Graduated Retirement Benefit (GRB), accrued between 6 April 1961 and 5 April 1975;
• State Earnings Related Pension Scheme (SERPS), accrued between 6 April 1978 and 5 April 2002; and
• State Second Pension (S2P), accrued between 6 April 2002 and 5 April 2016.
• Eligibility for GRB and SERPS was based on the Class 1 NICs paid by employees. Eligibility for S2P was based on Class 1 NICs paid by employees and credits for Class 1 NICs received by those claiming certain benefits
• It was possible to ‘contract out’ of these schemes via an employer’s contracted-out defined benefit scheme. While contracted out, no entitlement to Additional State Pension was accrued. This reduced the NIC Class 1 liability