State pension forecast and COPE

dunstonh

In very simple terms, the contracted out years are superceded by the contracted in years. You have more than 35 contracted in years. So, you are a winner under the new system.

xylophone

Would someone please be kind enough to clarify something for me?

At 6.4.16 two calculations were done.

Old Rules

Full Basic State Pension because you had more than 30 years NI + (SERPS/S2P - deduction for contracting out).

So £119.30 + ( SERPS/S2P - Deduction for Contracting Out).

New Rules

Full NSP (because you had more than 35 years NI) - COPE

So £155.65 - COPE.

Your starting amount was the higher of the two.

If your starting amount was less than full NSP then you could increase it by post 2016 contributions up to full NSP prior to your state pension age.

If it was equal to full NSP then you could not increase it but would continue to pay NI up to SPA.

If more than full NSP then you would receive that amount.

At SPA this would be split into full NSP and excess over NSP - the "protected payment" - this is because the two amounts are index linked differently in payment.

It seems that in your case you had accrued enough SERPS/S2P to negate your COD/COPE.

You mention that you are in receipt of the contracted out pension - it will have a GMP because you were contracted out for a period between 1978 and 1997.

All your GMP is pre 1988. Your scheme has no obligation to index link this part of your pension beyond GMP age although some schemes (at the moment) do.

You might wish to check your scheme booklet.

Jakeywakey

Thank you everyone for your explanations - I am much clearer now and obviously happier to be a winner than a loser under the new system :-))