State Pension Forecast Query

Jack_Itin

Thank you for the replies.....I have 4 and a half months to go until I am 65, so thought I would start looking into things now........as usual these forums are a great help.......Jack.

xylophone

Is a COPE shown on your forecast? I seem to remember that you are in receipt of a DB pension and were contracted out.

At 6/4/16 two calculations were done

Old rules

Full BSP (£119.30) + (Additional State Pension minus Contracted Out Deduction.)

New Rules

Full NSP (£155.65)- COPE

Your starting amount was the higher of the two.

Dazed_and_confused

Whilst you were contracted out were you expecting to get £140+ or the basic state pension of £120 or so?

Really do think you're looking at this from the wrong perspective. No one is getting less under the "new" state pension rules, you either get the same or more.

The general consensus on similar threads is that people who have been contracted out are in a win win situation. Lower NI contributions for years and then the opportunity to get the "new" state pension amount simply by paying the normal NI amounts for a relatively small number of years.

Unless you can tell us what your state pension forecast was prior to April 2016 you will struggle to get many people to see you as having been penalized.

Jack_Itin

Yes it says my COPE estimate is £48.33 a week.....and it says "this will not affect your pension forecast".......now I am confused......Jack.

Dazed_and_confused

The reason it says "this will not affect your pension forecast" is because it will not affect your pension forecast.

You start at April 2016 with two figures which are, in very simple terms,
A. The amount you were always expecting to get had there been no changes
B. An amount which takes into account a mythical value, called COPE, associated with your contracted out pension

Whatever is higher at that point is your starting amount.

You can then completely forget about COPE as it is irrelevant (unless your company pension is going to be less than the COPE value but I don't think anyone who has ever posted on here has ever been in that position).

Where you are in a win win position is that you take your starting amount and can add to that with every post April 2016 qualifying year.

So someone contracted out all of their life might have two figures
A. £120
B. £80

But being generous the government decided that rather than allow you to build up B with future years and allow you to get the final amount of B + additional years (or A if that was still higher at state pension age) they would forget all about B and what you actually get is A plus any additional post April 2016 years.

So you benefit from lower NI pre April 2016 and the ability to get up to (if you're not too close to state pension age) the "new" state pension amount of £160.

xylophone

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

Read the above but for BSP read £119.30 and for NSP £155.65.

Jack_Itin

Thanks for the replies......I understand it a little better now.......Jack

Jack_Itin

O.k. Sorry to be a pain, but just one more question.....for now......my retirement date is 30th April, which is a Monday....my payment day seems to be a Wednesday, if the NI no. last two digits thing is still in use.....is it right then that I will be paid on the 9th of May ? as they don't pay part weeks, and if so how much ?.....a full month, or just that first week ?......Jack.

p00hsticks

Jack_Itin wrote: »

O.k. Sorry to be a pain, but just one more question.....for now......my retirement date is 30th April, which is a Monday....my payment day seems to be a Wednesday, if the NI no. last two digits thing is still in use.....is it right then that I will be paid on the 9th of May ? as they don't pay part weeks, and if so how much ?.....a full month, or just that first week ?......Jack.

It depends how you ask to be paid.

Assuming you mean 30th April 2018, you should be getting a letter from DWP shortly asking you to apply for your pension. (note that you don't have to if you are still working and don't need the money - if you don;t your pension will be deferred and you will get a higher weekly sum when you do fginally decide to claim it).

The default is to be paid four weekly in arrears. Going by my OH's recent experience, I think you may get an initial small adjustment sum to cover the first few days shortly after your retirement date, and then a full four weeks worth about a month later. Then four weekly from that point forward. They'll write to tell you exactly when you can expect the payment.

If you prefer to be paid weekly, then you can - but it's not an option offered directly. If you want this, I believe you need to put in your claim by phone rather than post/online, and specifically request a weekly payment

Jack_Itin

Thanks for that......yes April 2018, so maybe a little premature, but just wanted to find out as much as I can before getting the notification letter, which I expect to be early in the new year.....people I have spoken to have had no problems, except one chap, who didn't get a notification letter, but contacted DWP and all was fine.......thanks again, Jack.