Cope

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datlex
datlex Posts: 2,239 Forumite
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in Pensions, annuities & retirement planning
I was checking up on the current status of my pensions due to the fact I had opted out of SERPS back in the 1990s. I am in the fortunate position that due to my age I will still get the full new state pension as I am able to make enough contributions to qualify even with the changes to pensions. There was a separate amount called a COPE. https://www.gov.uk/government/publications/state-pension-fact-sheets/contracting-out-and-why-we-may-have-included-a-contracted-out-pension-equivalent-cope-amount-when-you-used-the-online-service
When I spoke to them they said the COPE was related to type of pension you had opted out to. Does any one know anything about this?
Paid off the last of my unsecured debts in 2016. Then saved up and bought a property. Current aim is to pay off my mortgage as early as possible. Currently over paying every month. Mortgage due to be paid off in 2036 hoping to get it paid off much earlier. Set up my own bespoke spreadsheet to manage my money.
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  • GunJack
    GunJack Posts: 11,675 Forumite
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    COPE is an estimate of what you may have built up in SERPS had you not opted out into the occupational pension scheme. When you opted out your NI was reduced.

    The way DWP/HMRC have presented the whole COPE thing has, IMHO, been confusing/misleading, when they talk about it will be paid as part of your private pension scheme...it's not, what you get from your private scheme is exactly that, what you get from your private scheme...
    ......Gettin' There, Wherever There is......

    I have a dodgy "i" key, so ignore spelling errors due to "i" issues, ...I blame Apple :D
  • Silvertabby
    Silvertabby Posts: 9,039 Forumite
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    COPE = confusion.

    Roughly, it's the amount of SERPS/SP2 you won't get in addition to the old basic State pension.

    In theory, the COPE will be paid your contracted out occupational/private pension - but it may be more or less than that, depending on your contracted out scheme.
  • datlex
    datlex Posts: 2,239 Forumite
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    Great thanks. I know what my opted out pension is worth with current provider. On the information they sent they said I could transfer to another provider. So I now need to research which provider is best, leave where is or move. Obviously I want to get at least the COPE amount hopefully more.
    Paid off the last of my unsecured debts in 2016. Then saved up and bought a property. Current aim is to pay off my mortgage as early as possible. Currently over paying every month. Mortgage due to be paid off in 2036 hoping to get it paid off much earlier. Set up my own bespoke spreadsheet to manage my money.
  • Silvertabby
    Silvertabby Posts: 9,039 Forumite
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    You've got the best of both worlds - a contracted out pension but enough time to accrue the full Single Tier pension.

    They way I look at it is that as I have been getting my COPE equivalent since I retired from the RAF, I have been getting what would have been my SERPS/SP2 long before I qualify for my State pension.
  • dunstonh
    dunstonh Posts: 116,458 Forumite
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    Its not helped when they use the term opt-out as that never had anything to do with SERPS. You contracted out of SERPs. You didnt opt out. Opt out is the term used to describe someone who doesnt join their workplace scheme.

    The COPE information has been poorly written and described in projections.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • badmemory
    badmemory Posts: 7,826 Forumite
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    Translation. I have paid full NI for many years to get my pension as have many others, you have not. The new changes mean you can get as much as us after paying in less AND you have the benefit of another pension which we do not (well certainly no where near as good).
  • GunJack
    GunJack Posts: 11,675 Forumite
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    Silvertabby wrote: »
    COPE = confusion.

    this is SO true :)
    ......Gettin' There, Wherever There is......

    I have a dodgy "i" key, so ignore spelling errors due to "i" issues, ...I blame Apple :D
  • bigadaj
    bigadaj Posts: 11,531 Forumite
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    badmemory wrote: »
    Translation. I have paid full NI for many years to get my pension as have many others, you have not. The new changes mean you can get as much as us after paying in less AND you have the benefit of another pension which we do not (well certainly no where near as good).

    Sarky but true.
  • Silvertabby
    Silvertabby Posts: 9,039 Forumite
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    edited 8 October 2017 at 1:12PM
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    “ Translation. I have paid full NI for many years to get my pension as have many others, you have not. The new changes mean you can get as much as us after paying in less AND you have the benefit of another pension which we do not (well certainly no where near as good).
    Originally posted by badmemory ”
    Sarky but true. Posted by bigadaj
    It's just the way it goes. Someone currently in their 50s who has always been contracted out would have a 2016 foundation amount of at least £120 per week (the old basic State pension). If they carry on working for a least 9 years, they will get the full Single Tier pension of £160 per week plus their full contracted out pension.

    However, they will pay FULL NI for the post 2016 years. I know people say the NI rebate is peanuts - but it's actually about £25 per month (plus £75 per month employer's rebate) for someone earning £25K.
  • bigadaj
    bigadaj Posts: 11,531 Forumite
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    Silvertabby wrote: »
    It's just the way it goes. Someone currently in their 50s who has always been contracted out would have a 2016 foundation amount of at least £120 per week (the old basic State pension). If they carry on working for a least 9 years, they will get the full Single Tier pension of £160 per week plus their full contracted out pension.

    However, they will pay FULL NI for the post 2016 years. I know people say the NI rebate is peanuts - but it's actually about £25 per month (plus £75 per month employer's rebate) for someone earning £25K.

    So an extra £40 per week on paying £25 a month, tough life.
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