Contributions:
People over
pension age
no. 21
This leaflet tells you about the contribution
requirements for people over pension age.
States of Guernsey
Social Security
If, after reading this leaflet, you still have
unanswered questions, please contact
us on 732502
This leaflet should be read with
Leaflet 50, which contains all the
current benefit payments and
contribution rates, available from
www.gov.gg/non-employedcontributions
Contents
Whereyoufitin..............................................................................2
Allowance........................................................................................2
Makinganapplication.....................................................................2
HowandwhenmustIpay?.............................................................3
Paymentbydirectdebit..................................................................3
Periodsoutoftheisland.................................................................4
WhatifIwork?................................................................................4
HowmuchdoIpay?........................................................................4
HowdoIapplytopaycontributionsbasedonmyincome?...........5
Retiringatpensionage...................................................................6
Investmentcompanyincome..........................................................6
Appendix:Income...........................................................................7
Forfurtherinformation...................................................................8
Whattodoifyouhaveacomplaint................................................8
1
Whereyoufitin
Ifyouareoverpensionageyoudonothavetopaysocialinsurance
contributionsbutyoudohavetopayhealthinsuranceandlongterm
carecontributionstowardstheSpecialistHealthInsuranceandLongtermCareSchemes.Thesecontributionsarebasedonpersonal
income.
Thisleafletisaboutnon-employedpeopleoverpensionageandtheir
liabilitytopaycontributionstotheHealthServiceFundandLongtermCareInsuranceFund.Entitlementundertheschemesprovided
bythoseFundsisdescribedinLeaflet2andLeafletLTC1.
Allowance
Ifyouhavemadeanincomerelatedclaim,thevalueoftheallowance
willbedeductedfromtheincomefigureprovidedbyIncomeTax,and
yourrateofcontributionwillbecalculatedbasedonthebalance.If
yourincomebeforethedeductionoftheallowanceislessthanthe
LowerIncomeLimityouwillnothavetopayacontribution.See
Leaflet50fordetailsoftheallowance,alongwithcurrentannual
incomelimitsandpercentagerates.
SocialSecuritywillnotbeabletodecideifyoumustpayatall,orif
youcanpayataratelessthanthemaximum,untildetailsofyour
incomearereceivedfromIncomeTax.
Makinganapplication
Peoplewhodonotmakeanapplicationtopayonthebasisoftheir
actualincomewillbechargedatthefullweeklycontributionrate.
Ifyouaremarriedandbothpartnerswanttopayincome-related
contributionsatlessthanthemaximumrateyoumustmakeseparate
2
income-relatedapplications,evenif,asamarriedcouple,youdeclare
yourincometoIncomeTaxonthesameform.Inthesecases,
IncomeTaxwilltellustheamountofincomeofeachspouse.
Itisthereforeveryimportantthatyoucompleteanapplicationform
ifyouwantyourcontributionstobebaseduponyourincome,orif
youbelieveyourincometobebelowtheLowerIncomeLimitand
wishtobeexcusedfrompayment.Theapplicationformwillalso
authorisetheDirectorofIncomeTaxtodisclosetotheAdministrator
ofSocialSecuritytheamountofyourassessableincomeforthe
currentandfutureyears.
Thisinformationisonlyusedfortheassessmentofhowmuchyou
willhavetopayforyourcontributions,andfornootherreason.
HowandwhenmustIpay?
Paymentofcontributionsisbyquarterlyinvoicewhichissenttoyou
onoraroundthe16thofthemonthfollowingtheendofeach
quarter.Youthenhave28daysinwhichtomakethepayment.For
example,theinvoiceforthefirst13weeksoftheyearwillbesentto
youon,oraround,16April,andpaymentshouldbemadebynolater
than14May.
Paymentbydirectdebit
IfyoudecidetopayyourcontributionsbyDirectDebityouwillnotbe
issuedwithaninvoice.Instead,paymentwillbesenttous
automaticallybyyourbankorbuildingsociety.
Youwillbeabletochoosebetweenquarterlyandmonthlypayments,
whichwilltakeplaceonthelastdayofthemonthfollowingthe
quarter,orthelastdayofthefollowingmonthifyoupaymonthly.
Youwillalwaysbenotifiedinadvanceoftheamountanddateof
3
eachdebitfromyouraccountandyouwillalwaysbeabletocancel
yourDirectDebitinstructionatanytime.
InadditiontomakingpaymentsbychequeorDirectDebit,payments
canalsobemadebydebitorcreditcardintheoffice,overthe
telephone,oronline.Paybydebit/creditcardbyphoning732502or
logonto:www.gov.gg/howtopaycontributions.
Periodsoutoftheisland
Youdonothavetopaycontributionsforperiodsinwhichyouareout
oftheIslandfor13weeksormore.YoushouldinformSocialSecurity
ofthedatessothatyourliabilitycanbeadjustedaccordingly.
WhatifIwork?
Ifyouworkforanemployer,orcarryoutself-employedwork,you
willbeliabletopayanon-employedcontributionbaseduponyour
totalpersonalincomeratherthananemployeecontributionbased
uponyourearnings.
IfyouworkforanemployerandearnmorethantheLowerEarnings
Limit,youshouldobtainandpasstoyouremployeranorange
registrationcard.Althoughyouwillnothavetopayanemployee's
contribution,youremployerwillstillberequiredtopayan
employer’scontribution,whichwillbeatthesamepercentagerate
asthatpayableforemployeeswhoareunderpensionage.
HowmuchdoIpay?
Themaximumrateofcontributionpayableiscalculatedbydeducting
theallowancefromtheannualUpperIncomeLimit,dividingitby52
weeks,andmultiplyingitbythepercentageratesetfortheyear.
4
SeeLeaflet50fordetailsoftheallowance,alongwiththecurrent
annualUpperIncomeLimitandpercentagerate.
Ifyouhavemadeanincomerelatedclaim,andyourincomeisequal
toorabovetheLowerIncomeLimit,thevalueoftheallowancewill
bedeductedfromtheincomefigureprovidedbyIncomeTaxfrom2
yearsprevious(seeAppendix).Yourrateofcontributionwillbe
calculatedbasedonthebalance(pleaseseeaboveforcalculation
method).Ifyourincome,beforethedeductionoftheallowance,is
lessthantheLowerIncomeLimityouwillnothavetopay
contributions.
HowdoIapplytopaycontributionsbasedonmyincome?
SimplyfillinanapplicationformavailablefromSocialSecurityorthe
AlderneyStatesOffice.Theformcontainsanauthorisationforthe
DirectorofIncomeTaxtodisclosetotheAdministratorofSocial
Securitytheamountofyourassessableincomeintherelevantyear
ofcharge.Youwillbeissuedannuallywithanotificationshowing
yourincomeandtheweeklyrateofcontributionfortheyear.
Yourcontributionsmustbepaidwithin28daysofthequarterly
invoicebeingissuedtoyou,orbydirectdebit.Ifhowever,your
assessableincomeisnotavailablefromIncomeTax,wewillestimate
afigure.Thisfigurewillbebaseduponyourassessmentforthe
previousyear,andincreasedbyapercentagetobedecidedbythe
Committeeeachyear.Arefundoraccountwillbeissuedwhenyour
actualweeklyliabilityisestablished.
Wewillnotprovideanestimatedfigureformorethan3years,and
wherenoassessmentisavailableforafourthconsecutiveyear,you
willbechargedatthemaximumrateforthatyear.Youareadvisedto
submityourtaxreturnearlysothattheinformationneededto
accuratelyassessyourrateofcontributionisavailableingoodtime.
5
Retiringatpensionage
Inthiscase,thereislikelytobeadelaybeforeyourIncomeTax
assessmentsreflectyournewcircumstances.SocialSecuritywill
thereforeuseestimatesofyourincomeforuptothefirstthreeyears.
Yourcontributionratewillberevisedassoonasyouractualincome
hasbeenestablished.Ifyourincome,asassessedbyIncomeTax,
exceedstheSocialSecurityestimateofyourincome,youwillbe
requiredtomakeuptheamountofcontributionsunderpaid.Onthe
otherhand,youwillreceivearefundifyouractualincomeisless
thantheestimate.
Investmentcompanyincome
Ifyouhaveabeneficialinterestinaninvestmentcompany,the
appropriateincomefromthatcompanywillbeincludedinyour
assessmentaswell.IftotalincomeisbelowtheannualUpperIncome
Limitandyouwishtopayincomerelatedcontributions,thenameof
theinvestmentcompany(orcompanies)andtheextentofthat
beneficialinterestwillneedtobeprovided.Youwillneedto
completeareleaseformallowingIncomeTaxtodisclosetherelevant
detailsoftheinvestmentcompany.
6
Appendix:Income
Forthepurposesofincome-relatedcontributions,incomemeans
totalpersonalincome,asassessedbyIncomeTax,fortherelevant
yearofchargebeforeanydeductionsoftaxallowances.
Whereacontributorretiresatpensionage,specialruleswillapplyfor
theyearofretirementandthetwofollowingyears,asshowninthe
tablebelow:
ContributionYear
1Jan-31Dec
2017
2018
2019
IncomeTaxYearofCharge
2017
2018
2018
Otherthanfornewlynon-employedpeoplewheretherulessetout
intheprevioustableapply,weuseincomefromthe2yearsprevious
toestablishyourrateofcontributionforthecurrentyear,assetout
inthetablebelow:
FinancialYear
Ending
2015
2016
2017
IncomeTaxYearof
Charge
2015
2016
2017
ContributionYear
1Jan-31Dec
2017
2018
2019
Leaflet50setsoutthecurrentcontributionratesforemployed,selfemployedandnon-employedpersons.Italsodetailstheearningsand
incomelimits.
7
Forfurtherinformation
Ifyouareunsureofthemeaningofanyparticularpointinthisleaflet,
pleasecontactSocialSecurity,ortheAlderneyStatesOffice,where
staffwillbepleasedtohelpyou,andfromwherecopiesofother
leafletsmaybeobtained.
MoreinformationisalsoavailableontheStateswebsitehere:
www.gov.gg/non-employedcontributions.
IfyouarewritingtoSocialSecurity,pleasequoteyoursocial
insurancenumber,ifknown.
Whattodoifyouhaveacomplaint
Ifyouaredissatisfiedwithanyaspectofourservicespleaseleta
memberofstaffknowatthetimesothatwecantrytoresolvethe
issueimmediately.IfyouwishtomakeaformalcomplainttoSocial
Security,pleasecontactusforacomplaintsleafletandreturnthe
completedcomplaintsformtoSocialSecurity,EdwardT.Wheadon
House,LeTruchot,StPeterPort,GY13WH.
Youcanalsorequestmoreinformationbyemailandreturnyour
[email protected]
complaintoracomplimenttousonlineattheStateswebsite,by
visitingwww.gov.gg/cccandcompletingtheelectronicform.
8
How we collect and use information
Social Security processes personal information for social
security purposes in order to carry out functions relating to
the relevant social security and associated legislation that it
administers. The information collected will depend on your
business with us, but will be no more than is required for that
purpose. We may get information about you from others for
any of our purposes if the law allows us to do so. We may also
share information with certain other organisations if the law
allows us to. Any personal information you give to us will be
processed in accordance with the Data Protection (Bailiwick
of Guernsey) Law, 2001. If you wish to know more about the
information we have about you, or about the way we use it,
you can ask at the Office of the Committee for Employment &
Social Security or by emailing:
[email protected]
This leaflet is for guidance and must not be treated as a
complete and authoritative statement of the law.