Totally confused by Contracted Out Deduction Letter

SeekTruth

howy22 wrote: »

I have another query relating to COD.
After attaining state pension age does the COD get revalued each tax year, along with ASP.

The COD is actually in 2 parts. Part 1 relating to GMP earned up to April 1988, and Part 2 relating to GMP earned after April 1988 (up to April 1997). The Pre-88 GMP stays constant once you reach SPA. The Post-88 GMP increases in line with inflation (pretty sure its CPI) up to a maximum of 3%.

xylophone

http://s00.static-shell.com/content/dam/shell/static/pensions/downloads/gmp-factsheet.pdf

https://www.nationalgridpensions.com/346/588/2012-pension-increase-qas
might be of interest.

The above use RPI for excess.

http://www.yourpension.org.uk/Files/Files/In%20The%20Scheme/5.%20GMPGuide240211.pdf Uses CPI throughout.

Have you yet received revised statements for 2012-13 and 2013-14 from the DWP?

howy22

Hello xylophone/ SeekTruth,
Yes I've received a revised statement.
2012/13 now uses the HMR COD of £98.83 although there was no breakdown for 2013/14, so I rang, once more, to be told they were using £99.66.
After my previous encounters with DWP I didn't want to take it at face value. However, it does reconcile with a 2.2% increase on the post 88 element of GMP as shown on the statement from my occupational pension provider.

xylophone

The ASP for 2013-2014 is £101 (98.83 x 2.2%, which was CPI in September 2012).

The COD is £60.65 (pre 88 GMP - this never changes) + £39.01 (post 88 GMP of £38.17 x 2.2% escalated by your scheme) = £99.66.

So you should be receiving pre 97 ASP of £101.00 - £99.66 = £1.34 with your State pension?