New State Pension Guide

p00hsticks

Paul_Newnham wrote: »

Thanks

So can you explain what the COPE amount represents then?

And how can i find out if i get the full amount of the new state pension? I thought the New Pensions State Pension decreased if you had contracted out? But by how much?

The COPE figure would have been used in the calcuations as to your 'starting amount' at the point at the new state pension was introduced on 6/4/16. It is to acknowledge the fact that in previous years you have paid less NI due to being contracted out.

Basically, your 'starting amount' for the new state pension was the higher of the calcuation under the old rules;

(NI years up to a maximum of 30 / 30 x old basic pensionvof £119.30) + SERPS/S2P

or the new rules;

(NI years up to a maximum of 35 / 35 x new maximum pension of £155.65) - COPE

Once this amount was calcuated the COPE figure is no longer used. Contracting in/out disappeared under the new state pension so all NI years subsequent will simply see your state pension increased by 1/35th of the maximum until the maximum is reached.

If your pension forecast was up to 6/4/16 then it's quoting your starting amount - if later it may include an additional year.

Paul_Newnham

Thanks again.

Excuse me for not quite understanding and for your patience. I am sure the figures you quoted are true and correct but they do not necessarily answer my question or at least not in a way i can understand.

I presume that, giving what you have said, i can now ignore the COPE figure and it is irrelevant in any further calculations?

Can i also presume that i will receive the full amount of the New State Pension and nothing will be deducted because i have contracted out in the past?

I will have accrued 35 years of NI in six years time if this helps.

molerat

Paul_Newnham wrote: »

Thanks again.

Excuse me for not quite understanding and for your patience. I am sure the figures you quoted are true and correct but they do not necessarily answer my question or at least not in a way i can understand.

I presume that, giving what you have said, i can now ignore the COPE figure and it is irrelevant in any further calculations?correct

Can i also presume that i will receive the full amount of the New State Pension and nothing will be deducted because i have contracted out in the past?what you have already earned, that figure calculated at April 16 using the COPE amount, is banked and going forward you will add to it.

I will have accrued 35 years of NI in six years time if this helps.

The number of years you had became a bit irrelevant after the April 2016 calculation. They were used, along with the COPE, to calculate a £ figure. From that point on you will add to that £ figure by a set amount each year until you reach the maximum pension. If you have a COPE amount quoted 35 years will not give you the maximum pension. The pension statement tells you how many more years you need to achieve that.

The 35 years quoted only truly applies to those commencing their working life after April 2016, everyone starting before then has a hybrid pension. As an example I had 39 years at April 16 but have not got the full amount. I can add to it from then but will not reach the full amount because I have not got enough years left to contribute.

bigadaj

Paul_Newnham wrote: »

Thanks again.

Excuse me for not quite understanding and for your patience. I am sure the figures you quoted are true and correct but they do not necessarily answer my question or at least not in a way i can understand.

I presume that, giving what you have said, i can now ignore the COPE figure and it is irrelevant in any further calculations?

Can i also presume that i will receive the full amount of the New State Pension and nothing will be deducted because i have contracted out in the past?

I will have accrued 35 years of NI in six years time if this helps.

The cope figure represents what is assumed to be the value of the contracted out savings from NI. So this value will be included within your private pension into which the contributions have gone, be that defined contribution or defined benefit.

athonjon

Hi. So 35 years of NI contributions gives the maximum amount of the new state pension. If you were contracted out, and therefore have a COPE figure (in my case around £10's worth, for a total of about 6 years), but you pay in much more than 35 years worth of contributions. Can you still get the full state pension?

xylophone

Hi. So 35 years of NI contributions gives the maximum amount of the new state pension. If you were contracted out, and therefore have a COPE figure (in my case around £10's worth, for a total of about 6 years), but you pay in much more than 35 years worth of contributions. Can you still get the full state pension?

Have you obtained a new state pension statement?

https://www.gov.uk/check-state-pension

What does it say?

Michael110

Hi All

I am not sure if this has been dealt with before, I have been asked to help a friend whose husband has died sort out the finances.

The husband reached pension age after 6th April 2016 so come under the new rules. He decided to defer to increase the weekly rate of pension as he was still working, unfortunately he died on 23rd April this year.

Here is the important bit, apparently the pension he did not draw each week after retirement age is lost and cannot be claimed, so there is no enhanced pension and no payment to the family of the money he would have got if he had claimed his pension when he was entitled to it.

This does not appear to be made clear in the guides to deferment, the additional money is highlighted but not the fact that if you defer and die you lose all the pension you would have been paid.

I think this is outrageous, what is the point of deferring.

JezR

This is a recent article written by Steve Webb on this matter. From that your friend can claim for 3 months of back payments.

greenglide

This does not appear to be made clear in the guides to deferment, the additional money is highlighted but not the fact that if you defer and die you lose all the pension you would have been paid.

I think this is outrageous, what is the point of deferring.

This is "well known" here but you do need to read all of the guides, not just the headlines.

The common term is the it is not "inheritable". The lower rate of earned increments and the fact that it is not inheritable needs to be taken into account when the decision is made to defer. Certainly in is nowhere as generous than under the old rules but it is still an excellent deal for someone in good health.

Medosh

I have learned a lot from this thread. But still not enough.
My wife is currently in receipt of an occupational pension, having been contracted out all her working life. She has 36 qualifying years, from 1976-2012 at retirement. She has made no NI contributions since then.
Her SPA at age 66 is 15 March 2021. My MSE knowledge from here tells me it will be worth purchasing the maximum Class 3 from Apr 2016 to SPA (at least 4 and possibly 5 years). What I have not understood, is will there be benefit from purchasing Class 3 for years between September 2012 and April 2016? Can anyone enlighten us?