Contracted out Deductions (COD)

Just_landed

I have started to look after my mothers finances. On looking into her State pension forecast it states :- less Contracted-out Deductions of £****. I thought that was when you are paying into another pension (Company etc.) but my mother does not receive any other private income / pension. Does anybody Know what else could be causing this situation ?


Ta

xylophone

Has your mother ever worked for an employer providing a contracted out pension scheme?

Failing that, did she ever choose to contract out of SERPS?

anmarj

Is she a widow? She may well of inherited a pension but could of taken a lump sum at the time, but the COD will stay on the state pension.

Just_landed

xylophone wrote: »

Has your mother ever worked for an employer providing a contracted out pension scheme?



my mother does not receive any other private income / pension.





Failing that, did she ever choose to contract out of SERPS?

Does this mean :- In the day you could opt out of the second part of NI, besides reduced woman's contributions. So this would come under COD ?

xylophone

See http://www.moneyexpertise.co.uk/what-serps-what-was-contracting-out.html

Did your mother contract out?

Does she have a pensions policy on which she has not claimed?

Does she have a deferred pension which she has forgotten?

Does she receive a widow's pension?

Just_landed

http://www.moneyexpertise.co.uk/what-serps-what-was-contracting-out.html

Did your mother contract out?
Hi my mother is 87 so I would say not but it would of been a very long time ago. Does paying the reduced woman's stamp = COD ?

Does she have a pensions policy on which she has not claimed?
She receives a part private pension from her husbands company, nothing to do with HMG.

Does she have a deferred pension which she has forgotten?
This is what I'm trying to find out if possible / mother doesn't think so.

Does she receive a widow's pension ?
Nothing from HMG if that's what you're asking.


I wonder if she could have a private pension somewhere that she has never claimed ? What other reasons could she of been contracted out ?


:cool:

greenglide

She receives a part private pension from her husbands company, nothing to do with HMG.

So the husband will have been contracted out.

So she will have inherited part of his pension, if she didn't have the full basic pension, and she would inherit his Additional Pension (AP) from GRAD and SERPS. This will be listed on the uprating notification she will have received a few weeks ago and will be offset by the COD from his employers pension scheme.

The "small stamp" (married women's reduced rate election) is totally unrelated to COD.

Just_landed

greenglide wrote: »

So the husband will have been contracted out.

So she will have inherited part of his pension, if she didn't have the full basic pension, and she would inherit his Additional Pension (AP) from GRAD and SERPS. This will be listed on the uprating notification she will have received a few weeks ago and will be offset by the COD from his employers pension scheme.

The "small stamp" (married women's reduced rate election) is totally unrelated to COD.

What you say greenglide makes sense to me. Thanks all.


I have found a copy from the Pension Service for next year it says:-


Pre 97 additional state pension £****
Less contracted-out deducted (COD) £****



Does this help to clarify things ?

xylophone

Then the Pre 97 ASP will relate to your late father and the COD to the widow's pension she is receiving from his scheme.

http://www.moneyexpertise.co.uk/what-serps-what-was-contracting-out.html

Just_landed

xylophone wrote: »

Then the Pre 97 ASP will relate to your late father and the COD to the widow's pension she is receiving from his scheme.

http://www.moneyexpertise.co.uk/what-serps-what-was-contracting-out.html

Thank you for clearing this up for me.