Help Please, Home Responsibilities Protection question

xylophone

Thanks, I draw a workplace pension of £270 p/m.

Were you ever "contracted out"? Is a COPE shown on your forecast?

nigelbb

linclass wrote: »

I don't agree with either credit cards OR loans, Nigel. Of COURSE it would be great if I could pay for those extra years, but it just is not an option.

£20/week for five years is all you need to pay & you would be getting about an extra £4.80/week pension after seven months then another £4.80/week (total of £9.60/week) after fourteen months etc After three years you would be getting an extra £24/week so the extra pension would be more than covering your payments for added years. You really need to purchase these added years.

linclass

xylophone wrote: »

Were you ever "contracted out"? Is a COPE shown on your forecast?

Yes I was, xylophone:

Contracted Out Pension Equivalent (COPE)
Your COPE estimate is£22.95 a week.

I don't understand this figure, as the only contracted out pension I can think of, is the workplace pension, which is considerably more than this - about £270 p/m.

linclass

nigelbb wrote: »

£20/week for five years is all you need to pay & you would be getting about an extra £4.80/week pension after seven months then another £4.80/week (total of £9.60/week) after fourteen months etc After three years you would be getting an extra £24/week so the extra pension would be more than covering your payments for added years. You really need to purchase these added years.

No Nigel, it's £6,645 I will need to pay (just checked) and a loan would cost CONSIDERABLY more than £20 p/w.

HOWEVER - question for anyone that knows the answer, I have a 'pot' of £6k for my funeral (I don't plan on leaving for some time.... :-) ) IF I used this to pay up the contributions (I have until 2023 to do this but would pay in one lump) would I receive the full pension from November this year, when I start to draw it please?

xylophone

Yes I was, xylophone:

Contracted Out Pension Equivalent (COPE)
Your COPE estimate is£22.95 a week.

I don't understand this figure, as the only contracted out pension I can think of, is the workplace pension, which is considerably more than this - about £270 p/m.

See

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.


Your occupational pension includes the equivalent of what you would have earned in AP had your occupational scheme not contracted out



It would have been helpful if all information ("small stamp"/ COPE etc) had been included in your first post!:)

Anyway, to return now to post 4.

Your new rules calculation at 6/4/16 would have been

(23/35 x £155.65) - £22.95. This would have been £79.33.

Therefore it seem that your starting amount would have been based on the old rules.

23/30 x £119.30 + (Additional State Pension - deduction for contracting out).

The old rules calculation would seem to have given you a "starting amount" of around £102 - say around £91 Basic State pension + Additional State Pension of around £11 after the deduction for contracting out during the years that you were in a Contracted Out occupational scheme.

linclass

xylophone wrote: »

xylophone:


It would have been helpful if all information ("small stamp"/ COPE etc) had been included in your first post!:)

:o:o

Thanks,

linclass

molerat wrote: »

What were you doing prior to 1975 to have no record ?

Another question posed from your op is which is not possible, you can currently only become eligible for SP on the 6th of a month.

Prior to 1975 (1970-75) I was raising 2 children :-)

That's my mistake, it IS 6th November.

nigelbb

linclass wrote: »

No Nigel, it's £6,645 I will need to pay (just checked) and a loan would cost CONSIDERABLY more than £20 p/w.

I wasn't suggesting a loan just pointing out if you could pay manage to pay £20 towards your extra years that it would only be until you bought one added year as you would then start receiving extra pension & payments would get a bit easier. You can set up a Direct Debit with HMRC to pay by instalments as they realise people can't necessarily find the lump sum.

If they want £6,645 then it must be nine years. double check because I thought that all added years were now £800.

linclass wrote: »

HOWEVER - question for anyone that knows the answer, I have a 'pot' of £6k for my funeral (I don't plan on leaving for some time.... :-) ) IF I used this to pay up the contributions (I have until 2023 to do this but would pay in one lump) would I receive the full pension from November this year, when I start to draw it please?

If could pay the £6K now (or even a proportion) you should be well within time for payment of your pension in November. HMRC took about six weeks to acknowledge when I sent them a cheque but it took no more than about eight weeks before it was reflected in my NI contribution record.

molerat

linclass wrote: »

That's my mistake, it IS 6th November.

We'll both be having a party on that day then

linclass

molerat wrote: »

We'll both be having a party on that day then

:beer: :rotfl: :beer: