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FRSP - Not everyone gets £144
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Since 2008 when I first started getting SP forecasts online, they have not said how much ASP has been given up, just how much they thought I might get. They also said that in essence they reserved the right to say that the forecast might not be accurate... so to my way of thinking, at best it's a semi-informed guess!I am sure the forecasts used to say how much benefit had been given up from being contracted out.0 -
gadgetmind wrote: »I'm now utterly flummoxed. Some reading suggests that the COD might only be deducted from the pre-1997 SERPs earned, which in my case would mean these SERPs minus COD = 0 and I've earned SSP and S2P since.
See Section 2 here -
http://www.parliament.uk/briefing-papers/SN02674.pdf
It looks like COD is only for between 1978 and 1997.
For the purposes of the new scheme calculation you would expect them to calculate the rebate derived amount as the sum of
a) COD for 1978 to 1997
b) some sort of notional COD between 6/4/97 and 6/4/2002 for any contracted-out period
c) some sort of notional COD accrued after 2002 for any contracted-out period
There is something in the draft wording of the rebate derived amount which says adjust the contracted-out deduction assuming some other acts didn't apply possibly to allow for b) and c) but I don't have the stomach to look at that.
In terms of what can be offset against what under the current rules then pre 97 contracted-in SERPS for a contracted-in period can be lost against a negative additional pension from another contracting out period pre 97.
However it is just possible that any 97 to 2002 SERPS, and any post 2002 S2P can't be reduced by negative pre 97 additional pension. But I have never seen the rules here.I came, I saw, I melted0 -
But how accurate can I assume my latest S2P estimate is?
I contracted out between (roughly) 1992 and 2004 and have been contracted in every since.
There is no COD mentioned but S2P of around £27, which sounds about right for just under 10 years as S2P is accumulating at £2.70 ish pa even now.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
gadgetmind wrote: »But how accurate can I assume my latest S2P estimate is?
I contracted out between (roughly) 1992 and 2004 and have been contracted in every since.
There is no COD mentioned but S2P of around £27, which sounds about right for just under 10 years as S2P is accumulating at £2.70 ish pa even now.
If S2P can't be reduced (so you get at least basic state pension + S2P) then it should be quite accurate, at least that's my hunch.
It is the pre 97 period that causes a lot of the problems here because you have amounts revaluing at differing rates. Some people have contracted-out deductions increasing at as much as 8.5% pa which seriously eats into national earnings increasing SERPS over time.
I'm in the same position but I've only got the loss of 1pw of S2P at stakeI came, I saw, I melted0 -
My S2P is actually increasing faster than my naive crunching of band 1 and band 2 figures suggest it should even when earnings inflation is taken into account.
It went up close to £2.99 between 2011 and 2012 statements, so I think I can afford to chill.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
gadgetmind wrote: »I guess contracted out deduction is only for those contracting out to a final salary scheme?
I've been contracted out all my working years into a final salary scheme. So far I have had 2 state pension forecasts - neither have mentioned an actual deduction, only that I have been contracted out.0 -
you won't see any deductions when you're contracted out - because the deduction is taken out in the form of a lower ni deduction
the gateway forecast form is just badly worded - or just plain wrong depending on your frame of mind
and anyway all this discussion is pointless, the pensions minister himself stated on radio 4 last week that anyone due to get the basic £107/week would not be due for an flat rate pension of £144 - end of!
cheers
fj0 -
gadgetmind wrote: »I have just checked my state pension forecasts from 2010, 2011 and 2012. (The last is called a "statement" rather than "forecast".)
..........
and that's the important distinction. They are no longer forecasting what BSP and ASP & GRB you will get at retirement, only telling you what you have earned so far. If you have the 30 qualifying years the BSP won't increase (except by inflation-related rises) whereas it reminds me that I'm still earning extra ASP year by year.The questions that get the best answers are the questions that give most detail....0 -
Its probably explained elsewhere but what happens if you are contracted out now but in 2017 you will be contacted in again,you then work say another 15 years as a "contracted in" employee to retirement age.What do i get for the 15 years contracted back in qualifying years?0
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how can you find out if your contracted out?0
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