State Pension age (SPa) is changing between 2010 and 2020

Equalisation of SPa

As a result of changes brought in by the 1995 Pensions Act, from 6 April 2010 the age at which women reach SPa will gradually rise to become the same as it is for men (65). The changes will be phased in between 6 April 2010 and 6 April 2020 on a sliding scale, and will affect women born between 6 April 1950 and 5 April 1955. All women born on or after 6 April 1955 will reach SPa at age 65.

Publicity

Between April 2009 and January 2012, the Pension Service will write to all women affected by this change to advise them of their new SPa date and provide them with some general information about the Pensions Reforms. Some of your employees may be included in the mailings.

Recording National Insurance contributions

Currently, employees who are over SPa (60 for women and 65 for men) do not have to pay employee’s National Insurance contributions (NICs). The employer however has to pay Class 1 category C rate NICs.

As the SPa for women gradually increases, you will need to deduct, record and pay both employee and employer Class 1 NICs for women over the age of 60 up to their new SPa.

You will need to ensure that you have accurate dates of birth for all of your employees in order to determine when they no longer need to pay Class 1 NICs because they have reached SPa. The current edition of booklet CWG2 – Employer further guide to PAYE and NICs - (page 65) gives further information, including the types of proof that you can ask your employee to provide.

Class 1 category C rate NICs (employer only) will only apply to employees working beyond their SPa.