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  • FIRST POST
    • Conradfan
    • By Conradfan 10th Feb 18, 1:48 PM
    • 1Posts
    • 0Thanks
    Conradfan
    State Pension
    • #1
    • 10th Feb 18, 1:48 PM
    State Pension 10th Feb 18 at 1:48 PM
    I receive a state pension which is subject to a contracted out deduction. This amount varies from year to year - generally increasing. Does anyone know the basis on which the annual changes are calculated?

    Thanks in anticipation
Page 1
    • zagfles
    • By zagfles 10th Feb 18, 1:53 PM
    • 12,726 Posts
    • 10,781 Thanks
    zagfles
    • #2
    • 10th Feb 18, 1:53 PM
    • #2
    • 10th Feb 18, 1:53 PM
    It should be at the same rate as your GMP is increasing. GMP is paid as part of your occupational pension. Increases should be CPI capped at 3% for service between 1988-1997.
    • Linton
    • By Linton 10th Feb 18, 1:56 PM
    • 9,024 Posts
    • 9,108 Thanks
    Linton
    • #3
    • 10th Feb 18, 1:56 PM
    • #3
    • 10th Feb 18, 1:56 PM
    The SP currently increases each year by the triple lock - the greater of CPI inflation, wages growth, and 2.5%.

    Things get more complicated if you reached SP age prior to April 2016 or are receiving Extra Pension from having deferred it some time in the past.

    The contracted out deduction doesnt come into the calculation - the whole post 2016 pension is treated as a single payment calculated on the basis of your situation in April 2016. After that date the contracted out deduction no longer forms part of any calculation.
    Last edited by Linton; 10-02-2018 at 1:58 PM.
    • xylophone
    • By xylophone 10th Feb 18, 2:30 PM
    • 24,473 Posts
    • 14,327 Thanks
    xylophone
    • #4
    • 10th Feb 18, 2:30 PM
    • #4
    • 10th Feb 18, 2:30 PM
    I receive a state pension which is subject to a contracted out deduction. This amount varies from year to year - generally increasing. Does anyone know the basis on which the annual changes are calculated?
    You started receiving your pension before 6.4.16 and and some point received a letter like the one here? Post 21.

    http://forums.moneysavingexpert.com/showthread.php?t=4532605&highlight=cod+gmp&page=2

    You can read on from there - and post 45 might help.
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