New State Pension starting amount and full record of qualifying years- trial service

Bootsox

agent69 wrote: »

I've been in several pension schemes (deferred DB and current DC) and have been contracted in and out more times than the hokey cokey.

Which leads to another interesting question.

How far do you go through a financial year before that year flips from being "contracted out" to "contracted in" (or visa versa)?

molerat

skcollobcat10 wrote: »

Hello I received my estimated state pension forecast.

I'm 58, have been on civil service ill health pension since 2004, I understand I have another 8 years NI stamps (which are paid via DWP vis ESA benefit).

Letter says

Sp £142.73 per wk
38 qualifying years
Cope £25.17 per wk
Sp + Cope £167.90

Will my civil service pension not change (receiving it now 12 years)
Will Sp increase to £155.65.
What happens about Cope?

More confused now since receiving letter!

You currently have 35/35 new pension = £155.65 - £25.17 COPE = £130.48
0r
30/30 old pension = £119.30 + £23.43 add pension = £142.73

Your starting figure at Apr 16 is the old £142.73 (it may be somewhat higher with the addition of any S2P credits gained in 2015-16). You now need £155.65 - £142.73 = £12.92 / £4.45 = 3 years further post 2016 contributions / credits to take you up to the maximum figure.

Ignore COPE. It is only there to show you what value your reduced NI contributions should be receiving from your contracted out pension and they are deducted from your new state pension calculation to arrive at the 2016 starting figure.

molerat

Yes you should get the full £155.65. Your workplace pension should not be affected unless it is in the pension T&Cs, some do reduce at SP age, you need to consult your scheme booklet, but I doubt the CSP is one of those.

Sipowicz

I'm no expert, but I'd expect the Civil Service pension to rise at 65, when the GMP kicks in.

greenglide

I'm no expert, but I'd expect the Civil Service pension to rise at 65, when the GMP kicks in.

I would expect the civil service pension to be paying way above the GMP so SPa would make no difference.

It matters not how the scheme actually meets the GMP (enhancement etc) so long as it does.

green_man

green_man wrote: »

I finally got on this site when it was up and working. The estimate is:

Amount based on your contributions up to 2015

• £179.76 a week

which is £781.64 a month, £9,379.62 a year


Amount if you continue to contribute until 2033

• £151.25 a week

So given I have already retired does that mean if I contribute no further NI contributions I should get £179.76?

This service is a bit of a farce. See the above quote for what it told me back in December. I have been in again today and see completely different figures:

Estimate based on your National Insurance record up to 5 April 2015

• £146.76 a week

Checking Contracted out/COPE etc it says:

Your State Pension forecast £155.65 Your COPE estimate £0 COPE added to your State Pension forecast £155.65

So it thinks I have been contracted out (which I have for approx 12 years) but has a COPE of £0.


Its estimate is over £30 per week less than in December which is not insignificant
( Note I have 33 NI qualifying years prior to 2015)

Whats going on?

SnowMan

green_man wrote: »

I finally got on this site when it was up and working. The estimate is:

Amount based on your contributions up to 2015

• £179.76 a week

which is £781.64 a month, £9,379.62 a year


Amount if you continue to contribute until 2033

• £151.25 a week

So given I have already retired does that mean if I contribute no further NI contributions I should get £179.76?

green_man wrote: »

This service is a bit of a farce. See the above quote for what it told me back in December. I have been in again today and see completely different figures:

Estimate based on your National Insurance record up to 5 April 2015

• £146.76 a week

Checking Contracted out/COPE etc it says:

Your State Pension forecast £155.65 Your COPE estimate £0 COPE added to your State Pension forecast £155.65

So it thinks I have been contracted out (which I have for approx 12 years) but has a COPE of £0.


Its estimate is over £30 per week less than in December which is not insignificant
( Note I have 33 NI qualifying years prior to 2015)

Whats going on?

Lots of errors seems to be what's going on

One error seems to be that they haven't recorded or used a contracted-out deduction for you.

The contracted-out deduction seems to have been ignored when working out the old rules calculation in your original figures, and so your additional pension has been massively overstated because the pre 97 contracted-out deduction should have been subtracted (?)

But clearly the original figures are nonsense in any case because if you had earned £179.76pw then your estimate if you continue to contribute to 2023 should have been (at least) £179.76pw also.

In your latest figures they seem to have given you an estimate based on the new rules calculation as

33/35 x 155.65 = £146.76

So they are using the new basis assuming no contracting-out which is clearly wrong

What is strange is that if they are using a wrong contracted-out deduction of zero in the latest figures, then you would still expect them to be quoting an erroneous old rules calculation of around £180pw.

I agree your figures are a farce.

Send them a message through the help facility (quoting the previous figures), and report back your answer.

xylophone

Whats going on?

https://forums.moneysavingexpert.com/discussion/5384295

Post 91 may be relevant.

The system seems to be like the curate's egg........:)

You have 33 qualifying years.

You were contracted out for only part of your working life so will almost certainly have built up some SERPS/S2P in years when you were contracted in.

Your starting amount for NSP will be the higher of the "old" calculation
Full BSP + SERPS + S2P - (RDA) where RDA is calculated as

"1. Contracted-out Deduction from 1978-97;
2. A new notional deduction in respect of being contracted out between 1997 and 2002 - this value will be the amount of SERPS the person would have had if they had been contracted in;
3. The deduction made from gross S2P in respect of being contracted out from 2002 to 2016."

or the new which is
33/35 x £155.65 - (RDA).

It may be that even after the RDA deduction applied to the "old" amount, you had accumulated enough in additional pension for your starting amount to be around £179.

This would indicate that you will be one of those who will have a "protected payment" see here

https://www.moneyadviceservice.org.uk/en/articles/the-new-state-pension-rules-and-changes-explained

As far as inflation linking is concerned, it is expected that the "protected payment" will increase by CPI and the rest using the triple link formula, but this may change.

Chickereeeee

Chickereeeee wrote: »

The site still cannot calculate mine. It says 'sorry, please contact the future pensions centre'.

I have not seen anybody else report this problem. Am I alone?

C

Website still cannot calculate mine. But at least the message has changed:

"Sorry, your National Insurance record is a bit complicated, so we cannot give you a forecast. We're working on fixing this. "

C

SnowMan

green_man wrote: »

I finally got on this site when it was up and working. The estimate is:

Amount based on your contributions up to 2015

• £179.76 a week

which is £781.64 a month, £9,379.62 a year


Amount if you continue to contribute until 2033

• £151.25 a week

So given I have already retired does that mean if I contribute no further NI contributions I should get £179.76?

green_man wrote: »

This service is a bit of a farce. See the above quote for what it told me back in December. I have been in again today and see completely different figures:

Estimate based on your National Insurance record up to 5 April 2015

• £146.76 a week

Checking Contracted out/COPE etc it says:

Your State Pension forecast £155.65 Your COPE estimate £0 COPE added to your State Pension forecast £155.65

So it thinks I have been contracted out (which I have for approx 12 years) but has a COPE of £0.


Its estimate is over £30 per week less than in December which is not insignificant
( Note I have 33 NI qualifying years prior to 2015)

Whats going on?

Good article on the Daily Mail website today about someone who thinks their state pension forecast from the online system is wrong.

http://www.dailymail.co.uk/money/pensions/article-3605289/My-online-state-pension-forecast-132-78-week-website-faulty-Steve-Webb-replies.html

In that case you expect that the person has been contracted-out of the additional state pension at some point and that would explain the figures.

However the forecast for green_man looks like a mistake with the online system.

green_man are you in the process of querying your figures and will you be reporting back on this thread?