State Pension - Confirmation about COPE

tony4147

I have just logged in to see where I'm at with my state pension as I was contracted out for a number of years, I'm 54 y/o.

Forecast on 5/4/17 = £154
If I contribute another 2 years before 5/4/30 then it will be £159.55.
As I had a number of years contracted out my COPE is £38.81

My understanding is that the COPE is from a pvt pension that my contributions went into when I contracted out.

As I'm not planning on retiring for a least another 8 years at then I should have the required years of contributions for the full state pension in 2 years.

Am I correct that if I get the two years in then I will receive both the full state pension and the COPE?


i.e. the equiv of both £159.55+£38.81= £198.36 when I do come to retire


Or if not how many more years of contributions would be required to receive both a full state pension AND the COPE?

molerat

COPE is purely an equivalent amount that your contracted out pension may or not pay you. It is deducted from the "new" pension amount when calculating whether your April 2016 starting figure is based on the new or old calculation methods. You should forget it even exists because, in reality, it does not. When you retire you will get the maximum £159.55 from the state.

tony4147

molerat wrote: »

COPE is purely an equivalent amount that your contracted out pension may or not pay you. It is deducted from the "new" pension amount when calculating whether your April 2016 starting figure is based on the new or old calculation methods. You should forget it even exists because, in reality, it does not. When you retire you will get the maximum £159.55 from the state.

I understand that COPE is an estimated figure from a pvt pension that my contributions have been paid into for the years I was contracted out.

What I'm trying to determine is if I carry on working at least another 2 years but most likely 8 years will I get BOTH the full state pension at the equiv of £155 AND the pvt pension that my contracted out contributions were paid into?

molerat

Yes, your state and private pensions are completely independent of each other.

AlanP_2

tony4147 wrote: »

I understand that COPE is an estimated figure from a pvt pension that my contributions have been paid into for the years I was contracted out.

What I'm trying to determine is if I carry on working at least another 2 years but most likely 8 years will I get BOTH the full state pension at the equiv of £155 AND the pvt pension that my contracted out contributions were paid into?

To expand slightly on Molerat's answer:

Yes you will get SP plus the Private Pension but the private pension won't pay £38.31 per week as that is just the notional value of what the contracted out, reduced NI payments, should generate in a private pension according to the formula used by the DWP.

Your private pension will pay out whatever is in the scheme rules for your service, salary, accrual rate etc. and will typically be a lot more than the notional COPE value.

tony4147

So I will get the full state pension (whatever the £159 is in years to come) and also the private pension whatever that works out at, at that time.

Dazed_and_confused

No.

Based on your op,

you will get £154 from DWP when you retire (or whatever that is uplifted to in years to come)

you may get an extra £5.55 from DWP (or whatever that is uplifted to in years to come) when you retire but it depends on your NI contributions

you definitely won't get £38.81 from anyone

you should get whatever your company/private pension is

colsten

AlanP wrote: »

.... according to the formula used by the DWP

what is the formula they are using to calculate COPE?

colsten

tony4147 wrote: »

So I will get the full state pension (whatever the £159 is in years to come) and also the private pension whatever that works out at, at that time.

Have you had a pension statement / forecast from your works pension?

tony4147

colsten wrote: »

Have you had a pension statement / forecast from your works pension?

Its not a works pension, it is a pvt pension that my contracted out contributions were paid into, it is now paid up as no more payments are being paid into is as I am now contracted in.
Last statement the value of the pot was £51k

AlanP_2

colsten wrote: »

what is the formula they are using to calculate COPE?

I have no idea but there will be one hidden in their calculation engine somewhere.