Contradictory State Pension Estimate?

xylophone

You were contracted out between 1985 and 1995 into a contracted out occupational pension scheme.

This gives you a GMP.

When you left the scheme, you became a deferred pensioner of the scheme.

The GMP revalues in deferment up to GMP age - see and read https://www.barnett-waddingham.co.uk/comment-insight/blog/2014/08/18/what-is-a-gmp/

This GMP becomes the COD for the period 1978- 1997 to which reference is made in https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/447195/new-state-pension--effect-of-being-contracted-out.pdf

see point 8 on page 2.

See point 13 on page 4


13. For the period to 1997/98 there will be a Contracted-out Deduction as
per paragraph 10(1). The periods 1997/98-2001/02 and from 2002/03
onwards also have to be taken into account as people who have been
contracted-out would be building the private pension equivalent of Additional
Pension in the contracted-out scheme.

To reflect all periods of contracting out
a “Rebate Derived Amount” is introduced into the new State Pension
calculation and comprises the following:

1. Contracted-out Deduction from 1978-1996/97;

2. A new notional deduction in respect of being contracted-out between 1997/98 and 2001/02 - this amount 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 2002/03 to 2015/16.

In which years were you contracted out? It is on this that your RDA is calculated.

As far as I can see, COPE is just another term for RDA - I suppose that the DWP don't simply call the lot a COD (which it is in the sense that it is a deduction because of contracting out) because the term COD has in the past been specifically related to the deduction made from pre 97 ASP in the old state pension scheme.

molerat

Pre 2016 and post 2016 pensions are completely different animals and the way the deductions work is different.

Happychappy

Hi

I have just had a state pension forecast which was up to April 2015, at the present time I am forecast as follows

Estimate based on your National Insurance record up to 5 April 2015
£132.47 a week
Estimate if you continue to contribute until 2021
£154.80 a week

Obviously there is the 2015/16 year to put in, I have 44 years of contributions, so 45 years including the last one.

I intended to finish work this year, so how can I continue to build up contributions until I receive the state pension in 2021, I know the difference will be between the £132 and the £154, but my question is can I buy additional years between 2016 and 2021, also if I retire by the end of the year, possibly Dec, will this count as the 2016/17 year ?

Thanks HC

xylophone

https://forums.moneysavingexpert.com/discussion/5367287

post 441.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/513609/CA5603.pdf

Check out your NI situation for current year https://forums.moneysavingexpert.com/discussion/comment/70559166#Comment_70559166