Confused by contracted out COPE

xylophone

I more or less have to wait until I retire to get a firm quote.

It would seem that you have 35+ years of NI contributions.

Presumably you started work at some point after 1975.


If so, your starting amount was calculated under old rules and under new rules as follows:

Old Rules

Full Basic State Pension of £119.30 (because you had at least 30 years NI) plus (SERPS/S2P - deduction for contracting out).

The "SERPS/S2P - COD" is the "Rebate Derived Amount" or "Contracted Out Pension Equivalent".

Let's suppose that the result of the calculation above was approx £138.

New Rules

Full New State Pension (because you had at least 35 years NI) minus COPE.

This would have been £155.65 - COPE which in your case would have given approx £59.

Your calculation under the old rules was higher than under the new and the £138 was your starting amount for new state pension.

You still had a number of years before you reached state pension age so that you had time to increase your starting amount up to the full NSP either by paying NI via your salary in the normal way or (if not working), by voluntary contributions.

Each NI year paid/ vc'd from 6/4/16 up to your SPA adds 1/35 NSP to your state pension.

https://www.gov.uk/new-state-pension/how-its-calculated

Jerben

GibbsRule_No3 wrote: »

Still wanting to know if the 11 months from 2019 until March 2020 when my SP kicks in gives me anything or if those 11 months working are wasted when it comes to SP (I know it won't be wasted for my current employee pension fund and monthly wages)? It might determine if I retire December 2019 or wait until February 2020 though.

Your state pension only takes into account NI payments for full tax years before the tax year you reach SP age.
What is your forecast amount now?
(It could be the current and/or next year will not increase your NSP!)