Payment of Class 2 contributions (FOI)

​​​​​Request

A previous response to a Freedom of Information request, please see linkbelow, confirmed that, people leaving Jersey who had previously lived there for a period of at least three continuous years, could elect to voluntarily pay Class 2 Social Security contributions in order to continue to build on their Jersey state pension entitlement. The Freedom of Information response confirmed that the voluntary contributions must be at the full rate, which in 2022, was £1,019.50 per month. 

Payment of contributions (FOI)​​

​A

Why the cost of these voluntary contributions is so high when compared to the equivalent UK regime under which a former UK resident can pay voluntary Class 3 contributions to maintain their state pension entitlement at a rate of approximately £18 per week (£78 per month). 

B

What, if any, consideration has been given to implementing a more affordable regime to allow former Jersey residents to maintain their contributions toward a pension. 

C

Has any consideration been given to alerting returning Jersey students to the fact that they may qualify to make voluntary Class 3 contributions toward a UK state pension by virtue of having spent 3 continuous years living in the UK whilst studying at university. This would potentially entitle them to an second state pension at very reasonable cost, thereby reducing future dependence on the Jersey state pension as a sole source of income during retirement. 

Response

The Freedom of Information (Jersey) Law 2011 gives a right to request information that is held in recorded form, unless exempt. This request poses questions that relate to matters of policy rather than seeking information held in recorded form. Article 3 of the Freedom of Information (Jersey) Law 2011 therefore applies. ​

​Article applied 

Article 3 - Meaning of “information held by a public authority”

For the purposes of this Law, information is held by a public authority if –

(a)     it is held by the authority, otherwise than on behalf of another person; or

(b)     it is held by another person on behalf of the authority.​