The government has published more details of proposals outlined in the Autumn Statement to introduce a new class of voluntary National Insurance contributions (NICs) which will allow pensioners to boost their additional state pension.

A policy paper from the Department for Work and Pensions (DWP),Class 3A Voluntary National Insurance, says the scheme will open in October 2015 and will be available for a limited period, probably between 18 months and two years. It will be open to all pensioners who reach state pension age before the introduction of the single tier pension in April 2016.

Class 3A will give pensioners an option to top up their pension in a way that will protect them from inflation and offer protection to surviving spouses. In particular, DWP says it could help women, and those who have been self-employed, who tend to have low additional pension entitlement.

Each Class 3A contribution will result in the acquisition of a unit of extra pension which will increase the contributor's additional state pension by £1 a week up to a cap of potentially £25. People who take up Class 3A will receive extra additional State Pension in return. This extra additional State Pension will be added to people's existing pension payments, and entitlement will begin in the week following the day on which Class 3A contributions are paid.

DWP estimates that around 7m pensioners will have enough savings to pay the new NICs and says it will now work with stakeholders on the detailed design of the scheme. Details about the scheme are available HERE