State pension forecast - will I get the headline figure from the state or is COPE deducted?

mumf

What is COPE?

westv

mumf wrote: »

What is COPE?

Contracted Out Pension Equivalent.

Tom99

westv wrote: »

Contracted Out Pension Equivalent.

The amount of additional state pension you would have been paid had you not been contracted out.

Paul_Herring

Modern wrote: »

Also, I have heard some peoples’ forecasts are wrong so I thought I better check mine.

That's a completely different issue, totally unrelated to COPE - the numbers on the pension forecast were simply plain wrong in some, and it seems a growing number of, cases.

https://www.thisismoney.co.uk/money/pensions/article-6932201/My-state-pension-forecast-wrong-buy-ups.html

https://www.thisismoney.co.uk/money/pensions/article-7063599/Savers-misled-wrong-state-pension-forecasts-leave-plans-tatters.html

[Deleted User]

molerat wrote: »

Not if you had already accrued more than that prior to 2016. The absolute maximum is £305.61.

Correct, my forecast is £172.26 I have no idea when I was contracted in, but am thankful of it. I even had them send me a written forecast and its exactly the same but didn't show the workings

Paul_Herring

I have no idea when I was contracted in

When you first started paying NI - it was the default position to be in.

Note, however, that you don't start getting that increased amount until you reach state pension age.

Those who contracted out can start getting the proceeds of their NI refunds from (currently) age 55.

waveydavey48

Dazed_and_confused wrote: »

Or less.

Out of interest what made you think the COPE amount was possibly going to be deducted from your forecast amount?

This is an extract from elsewhere on the MSE site

"What counts is 35 years of full contributions – not ones where you paid a lower NI rate.

To this end, the Government will deduct a sum from your new state pension. It says that, while you'll get less than the full £168.60, retirees will still be paid what they would have got under the old state pension.

The sum is what the Government has coined your 'contracted out pension equivalent' (COPE) amount. If you ask for a state pension statement from the Government it will include this amount."

Maybe I'm a bit dense but that is confusing to me.

xylophone

Correct, my forecast is £172.26 I have no idea when I was contracted in, but am thankful of it. I even had them send me a written forecast and its exactly the same but didn't show the workings

Under the S2P system, it was possible to be contracted out and still earn some additional state pension.

See https://en.wikipedia.org/wiki/State_Second_Pension

S2P gives all employees earning up to £32,592 a year (in 2011/12) a larger pension than SERPS, regardless of whether they are "contracted out" or not - with most help going to those in the '"lowest"' earnings (up to £14,400 a year in 2011/12) - known as the "LET" or '"Low Earnings Threshold"'.

And see (but for BSP substitute £119.30 and for NSP £155.65)

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

Tom99

waveydavey48 wrote: »

The sum is what the Government has coined your 'contracted out pension equivalent' (COPE) amount. If you ask for a state pension statement from the Government it will include this amount."

Its an amount you are not going to get, therefore you will need to cope without it.

Paul_Herring

waveydavey48 wrote: »

This is an extract from elsewhere on the MSE site

Which, unsurprisingly, is as clear as the government website, since that's probably where the information was copy/pasted from without any thought going into rephrasing it to be less ambiguous..

(That page is here: https://www.moneysavingexpert.com/savings/state-pensions/)