How To Find Contracted Out Years

dunstonh

ian.smith7 wrote: »

Ok thanks every for the explantions.
I am not looking at the HMRC website now but i am sure it said the £205 included a COPE amount of £41 that was NÒT paid by the Govt but came from my private pension.
??
Ian

Key word: "included" - meaning already taken into account.

The £41 is a notional figure of what your state pension is reduced by to get to £205 (i.e. it would have been £246). Instead wherever your contracted out will be paying out that part of the pension (and the figure maybe higher or lower than £41)

eastcorkram

Quick question! How has the OP achieved the figure of £205? I'm due to claim in 2025, so am a similar age, have never contracted out, and my maximum forecast is £170.
Just curious, that's all.

xylophone

The calculation done at 6/4/16

Old Rules

NI years/30 x £119.30 + (additional state pension - deduction for contracting out)

New Rules

(NI years/35 x £155.65) - COPE.

Each individual starts with the higher of the two.

Even those contracted out could have some additional state pension - in certain cases where the amount of AP earned (which varies in amount from person to person) was high, the deduction still left a higher than basic SP/new state pension.

Those whose pension was calculated as equal to or greater than £155.65 could add no more to it even if still paying NI - in payment the amount over and above will be index linked by CPI rather than via the triple link.

Silvertabby

eastcorkram wrote: »

Quick question! How has the OP achieved the figure of £205? I'm due to claim in 2025, so am a similar age, have never contracted out, and my maximum forecast is £170.
Just curious, that's all.

Additional State pension (SERPS/SP2) is/was earnings related, so (assuming you were contracted out) the more you earned, the more NI you paid, the higher your SERPS/SP2. The maximum State pension under the old rules was something like £270 per week.

OldMusicGuy

Like Silvertabby said, it's earnings related. I will claim SP in 2023 and have been both contracted in and out. My SP will be around 206 per week. The reason for that is that I contracted out early in my career but contracted back in later in my career when my earnings were much higher, so the years of high contributions have counted more in my favour than the years I was contracted out. Just as Xylophone stated as well.

Alexland

Silvertabby wrote: »

Additional State pension (SERPS/SP2) is/was earnings related, so (assuming you were contracted out) the more you earned, the more NI you paid, the higher your SERPS/SP2. The maximum State pension under the old rules was something like £270 per week.

Still a long way away from SP age but I was doing very well under the old rules for the earnings related element however that has now just enhanced my starting amount for the new SP so I will have enough NI contributions for the new SP in my 40s which isn't really what I wanted given I intend to work longer and will continue to pay NI...

Alex

eastcorkram

Thanks for all the answers!
Is how much you earn, only relevant if you have been contracted out?
I may not be super high paid, but it's not low either. Last few years have been over 50k, a good few years before that over 40k, and many years before that over 30k etc .
I've not been contracted out.
Have also always worked full time since age 16.

ian.smith7

I do remember to paying S2P/SERPS for quite a few years both before and after Opting Out and opening my Pru pension.
Sounds like eastcorkham has had similar earnigs to me.
It looks like I have done better than expected. That makes a nice change !
Ian

xylophone

Re SERPS/S2P

https://en.wikipedia.org/wiki/State_Earnings-Related_Pension_Scheme

https://www.ifs.org.uk/bns/bn105.pdf

HandyMandy

Hi, I worked for Standard Life for over 20 years and was a member of their non contributory final salary pension scheme, which meant I was contracted out whilst working there.

The government website confirms I have 37 years of full NI contributions and need another 4 years of full NI contributions so I can receive the maximum state pension of £164.35 (due in 2032). It also states I cannot improve on this sum unless I put off claiming my pension.

My COPE equivalent is £48.70 per week.

I have a final salary pension from SL of approx £10k due to be claimed in 2025.

I intend working till 2025 so will pay another 7 years full NI contributions to gain the maximum state pension, I will claim my final salary pension of £10k p/a when I’m 60. Come 2032 I will also claim my state pension of £164.35 p/w.

My question is, will my COPE equivalent of £48.70 be deducted from my final salary when I start claiming my state pension? I have read through various booklets from the government & different pension websites and this COPE equivalent is as clear as mud to me. Any help would be greatly appreciated.