State pension forecast

dex97

Please could someone explain this to me.
I requested a state pension forecast in Nov 2015.
I am 58 years old in full time employment and my state retirement age is 66.

The forecast advised an estimated state pension of £151.07 a week, I have 41 qualifiying years.
It also advised a deduction of £51.69 a week as I had been contracted out.

Given that I have another potential 8 years of contributions I enquired if those 8 years would somehow offset the years lost while contracting out?
I didn't really get an answer but was sent an updated forecast today (8 months after the origional).

This forecast advised an estimated state pension of £157.34 a week, I now have 42 qualifiying years. It also advised a deduction of £75.57 a week as I had been contracted out.

I presume the small increase in state pension is due to the extra qualifying year? But why the bigger deduction? A further £23.88 a week?
I'm baffled. Any help would be much appreciated.

xylophone

Contracting out has now ended.

For those with a starting amount less than the full NSP, each year of contributions from 6.4.16 will add 1/35 of £155.65 to the starting amount either until full NSP is reached or up to SPA, whichever is the earlier.

Two calculations will have been done to establish your starting amount as here - (figure for BSP should be updated to £119.30 and for NSP updated to £155.65).

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/447195/new-state-pension--effect-of-being-contracted-out.pdf

In your position I would ring DWP and ask for clarification - you need to know your starting amount as at 6 4 16.

greenglide

It also advised a deduction of £75.57 a week as I had been contracted out.

Is this "deduction" a "COPE"? If it is you can / should / must ignore it. It is not an amount to be deducted from the estimated amount, it has already been taken into amount.