From October 2015, anyone who reaches state pension age before 6 April 2016, and who do not have the necessary contribution record to provide the full state pension, will be able to top up their state pension by paying a new class of voluntary National Insurance contributions (NICs).
This new class of NICs, class 3A voluntary contributions, will give existing pensioners and individuals who are entitled to a state pension, and who reach state pension age before 6 April 2016, the opportunity to increase their pension. They are aimed particularly at women and other groups who have done less favourably under the existing rules for the state pension and have not previously been able to top it up.
Payments can be made from October 2015, ie now, up to 5 April 2017. The maximum amount of units that can be purchased is 25 and these would provide an additional pension of £25 per week. The cost of each unit depends upon the age of the individual when they make the payment and ranges from a high of £956 per unit for a woman aged 62 down to £127 for those aged 100 or over.
There will be a cooling off period of 90 days from payment during which a refund can be obtained. This cooling off period also applies to the estate of a person who dies during that period.