State pension question again - sorry

molerat

If she has a £70 COPE then that is deducted from the new pension calculation so would leave a starting amount of an absolute maximum of £155.65 - £70 = £85.65 so her £143 must be based on the old calculation meaning no more than 30 pre 2016 years can count. As she already has 34 then buying any pre 2016 years will therefore not add anything to her pension (not ever).

Silvertabby

So I take it from this its not worth paying for the gap year in 2013/14 just yet at least. I used the chart from xylophone (thanks) and it seems to suggest waiting. I'm confused as to wether her calculation is based on new or old rules. How can I tell?

Thanks...

With a COPE of £70 her calculation will be under the old system.

Has she worked part time and/or been on a low or moderate rate of pay? If so, she may well have some post 2002 SP2 top ups in addition to the old basic rate pension.

xylophone

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



At 6/4/16

OLD Full BSP of £119.30 (because she had at least 30 years ) + (SERPS/S2P - deduction for contracting out).


NEW (33/35 x £155.65) - COPE (the "Rebate Derived Amount").

Her starting amount was the higher of the two.

http://www.thisismoney.co.uk/money/pensions/article-3535618/STEVE-WEBB-Buying-ups-paying-missing-NI-boost-state-pension.html

Post 2016 contributions will increase her entitlement.

madeinireland_2

Thanks very much everyone - I believe I now understand it - yippee!!!