Reducing impact of COPE through extra qualifying years?

ratechaser

If I understand correctly, COPE is an estimate of how much your state pension forecast will be reduced by. If I'm wrong there then please put me right and we are done.

But if I'm right, Mrs RC has a state pension forecast of £168/ week and an estimated COPE impact of £44/week, so her state pension will come down to £124

She already has almost all her qualifying years so the question is, if she continues to work for another 10 or so years, will the COPE impact be reduced as a result of having more fully qualifying years contributions? Or is it that once you hit 35 years, anything else you pay in NI gets disregarded for pension purposes?

Thanks
RC

molerat

You understanding is incorrect

COPE has no effect on the figures quoted on the pension forecast, what you see is what you will get providing you accumulate any further years necessary as stated on the forecast. COPE was only ever used in the one calculation carried out in April 2016 to determine the 2016 starting amount and plays no further part (except in a few cases of topping up pre 2016 years).

The forecast should have 2 or 3 figures giving forecast amount, current amount and maximum amount also stating how many more years are required to reach that amount - what are those numbers ?

ratechaser

Hmm, will check in the morning (posted as I was on the way out for the evening!) but I was fairly certain that the forecast just showed a single amount, and the number of qualifying years (in this case 34). Had to go to another screen to see the COPE number, and there was no obvious way to see how many of the qualifying years were impacted (the screen showing the specific years all showed as 'full' contributions...)

molerat

ratechaser wrote: »

Hmm, will check in the morning (posted as I was on the way out for the evening!) but I was fairly certain that the forecast just showed a single amount, and the number of qualifying years (in this case 34). Had to go to another screen to see the COPE number, and there was no obvious way to see how many of the qualifying years were impacted (the screen showing the specific years all showed as 'full' contributions...)

The COPE amount does not impact any particular year, a year is a year giving a set amount and COPE would be deducted from the new scheme amount in the 2016 calculation. With only one figure quoted there should also be the statements "£xxx.xx is the most you can get" and "you cannot improve your forecast any more"

ratechaser

Yes you're right, there was that number, and it was exactly the same as the forecast amount!

drumtochty

So what was the post about then!

ratechaser

drumtochty wrote: »

So what was the post about then!

Thank you for asking, your contribution is appreciated.

To clarify... the 'headline' screen that shows the forecast amount then also makes the point that there are some qualifying years that are impacted by contracting out. When you then click on that link, it provides a COPE estimate and the wording there suggests that this could be a reduction versus the forecasted amount. If that's not the case then all well and good!

Dazed_and_confused

You are reading things into this that simply aren't there.

If the forecast shows she has already accrued £168.60 then that is what she will get, nothing is deducted from it.

If it is just £168 not £168.60 then she can accrue another 60p and reach the maximum* under the new rules. In this situation another years contributions will only add 60p, to take her to £168.60, it cannot take her above £168.60.
*unless you had already accrued more than that

Daniel54

If she has 34 yearswith a substantial number of those years contracted out ,then her current SP entitlement is most probably the £124 quoted.She is certainly a long way short of the full NSP

As Molerat states above,, if you read the forecast I think you will find that it assumes that Mrs RC continues to have full years between now and her SPA,in which case she will be enntitled to the full NSP

If in doubt ,call DWP. Early morning from 8AM appears to be a good time to avoid a long wait.

Dazed_and_confused

Missed this originally,

Or is it that once you hit 35 years, anything else you pay in NI gets disregarded for pension purposes?

The 35 years rules don't apply to her. She is under transitional rules which mean 30 years might be enough or 40+ years might not be enough.

Google topping up State Pension Royal London for a really good guide which helps explain the transitional rules.

ratechaser

Dazed_and_confused wrote: »

You are reading things into this that simply aren't there.

If the forecast shows she has already accrued £168.60 then that is what she will get, nothing is deducted from it.

If it is just £168 not £168.60 then she can accrue another 60p and reach the maximum* under the new rules. In this situation another years contributions will only add 60p, to take her to £168.60, it cannot take her above £168.60.
*unless you had already accrued more than that

I should have known that my leaving the pence off would get noticed. Yes it was £168.60 to be precise and if I'm misinterpreting the COPE reference then that's the answer I needed, it just suggested - in my interpretation - that the COPE amount was the amount that should theoretically come from an occupational scheme rather than from the state pension.

Incidentally, my own forecast is for £172.68, which is more than I thought the maximum could be. Not a complaint, just an observation