COPE Query

ericsgirl

Hi,
Just did my state pension forecast, do I need to deduct the COPE figure, as I always though you did but now a bit confused.


state pension due 2025
43 years full contributions to 5/4/18

estimate SP at 5/4/18 = £157.13/week
forecast if I contribute 2 more years before 2025 = £164.35/week maximum
COPE figure £27.14/week


I know I was contracted out of SERPS on the rebate scheme rather than paying reduced contributions in 1988 & received a letter from HMRC saying no further rebates would be paid into my scheme from April 2007 and have now received the pack from that pension provider as I am able to take that at age 60.


Where I am not sure is in 2025 will I get the full state pension less the COPE figure or the SP figure in total.


I have done some research but keep finding conflicting views any clarity would be welcome.


Many thanks,

xylophone

do I need to deduct the COPE figure, as I always though you did but now a bit confused.

You had more than 35 years NI at 6/4/16.


At 6/4/16, two calculations were done


£119.30 + (Additional State Pension - deduction for contracting out)

£155.65 - COPE.

Whichever of those was the higher was your starting amount for the new state pension.

Your starting amount was not at the level of a full new state pension and you had several years before reaching SPA, so that you could increase it by post 6/4/16 contributions/credits up to the full amount.

Your private pension may provide an amount equal to, more than or less than the COPE figure.

https://www.gov.uk/government/publications/state-pension-fact-sheets/contracting-out-and-why-we-may-have-included-a-contracted-out-pension-equivalent-cope-amount-when-you-used-the-online-service

The pension you get from your workplace or personal pension scheme for the periods you were contracted out, should include an amount that, in most cases, will be the equivalent of the additional State Pension you would have got if you had not been contracted out. This is your Contracted Out Pension Equivalent (COPE) amount.

Paul_Herring

You do not subtract the COPE from that figure.

You need only two years NI contributions to qualify for a full pension.

dunstonh

You do not subtract the COPE from that figure.

It is strange how we see so many people posting on this forum that think they have to despite it not actually saying that on the state pension forecasts.

Paul_Herring

dunstonh wrote: »

It is strange how we see so many people posting on this forum that think they have to despite it not actually saying that on the state pension forecasts.

Well quite; it actually states the complete opposite:

Contracted Out Pension Equivalent (COPE)

Your COPE estimate is £##.## a week.

This will not affect your State Pension forecast. The COPE amount is paid as part of your other pension schemes, not by the government.

In most cases the private pension scheme you were contracted out to:

• will include an amount equal to the COPE amount
• may not individually identify the COPE amount

Though this is (1) only a single sentence and (2) the government handing out money, and people are quite willing to think the worst...

Silvertabby

Paul_Herring wrote: »

Though this is (1) only a single sentence and (2) the government handing out money, and people are quite willing to think the worst...

Tell that to all those who read 'New State Pension to be £155 per week' and believed it, and so didn't bother reading on to 'transitional arrangements and contracting out'.