Contracted out and cope

fly-catchers

Still a bit confused over this.
My COPE is showing as £48. Is this the amount that is taken off my SP? Because on the page where it shows what your current SP is worth it comes up as £145.20 a week. With 5 more years from April 2018 to get the full pension.
I am currently getting the NRA60 final salary and career average salary pension from Royal Mail which started when I reached 60 January 2018. Does my pension include the £48 COPE amount?

I am still at Royal Mail but hope to finally retire this year. So would hope to buy the remaining outstanding years for my SP. I realise you have to be careful to buy the correct years, but can this be done straightaway or best left till nearing the SP age of 66?

Finally how does the GMP impact on any pension increases? I started at RM in 1988 and gather that GMP would cover the years from 1988 to 1997. So will those years not get any increases until I reach 65. Or have I have misunderstood that part? Thanks..

molerat

COPE is an amount that was deducted from the new system pension calculation at April 2016. You were then given the higher of the old or new systems and that amount is, in most usual circumstances, set in stone. What you now see on your forecast is what you will get. COPE is an equivalent that the reduced NI amount you paid should be worth as part of the contracted out pension, it may be worth more or less than that figure but in any case it is a purely theoretical amount.


As for GMP, I am sure someone else will come along with that one.

xylophone

Calculations 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) - Contracted Out Pension Equivalent.

Your starting amount is the higher of the two.

Re voluntary contributions see

https://www.royallondon.com/siteassets/site-docs/media-centre/good-with-your-money-guides/topping-up-your-state-pension-guide.pdf

You are male and section C member? See below re GMP/pension increase


Guide to RMSPS
pension payments
and increases
For Section C members

"If you reach State Pension age on or after 6 April 2016
From April 2016, the new single tier State Pension was introduced. The government is currently consulting on how to manage GMP liabilities under the new State Pension scheme. As an interim measure, public sector pension schemes will take on paying all GMP increases until 5 April 2021.

We will be able to confirm what happens after that
once a decision has been made following the consultation. Pension above any GMP will continue to be increased by us as described above.

Please note that you will receive no GMP increases from the State if you instead receive the new State Pension payable from April 2016.
Whilst there will obviously still be a requirement to pay pension increases, we will need to await the outcome of the Government review to learn how GMP liabilities are to be dealt with and who will be responsible for these going forward.

If you begin receiving your pension part way through a Plan Year (i.e. a date other than31 March), your first pension increase may be lower than the full year’s increase."