State Pension and COPE

Silvertabby

MallyGirl said:

yep

Contracted Out Pension Equivalent (COPE)

Your COPE estimate is£31.75 a week.

Then you should have a reasonable DB pension on top of your State pension.

k6chris

This is still confusing, no matter how many times I try and get my head around it.  My summary, which according to my NI record is based on "37 years of full contributions"

"Estimate based on your National Insurance record up to 5 April 2021 - £177.51 a week

Forecast if you contribute another year before 5 April 20xx - £179.60 a week

£179.60 is the most you can get.

Your COPE estimate is £64.93 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."

My question: 

Does this mean that when I reach SP age, based on current rules, and not including any inflation increases, my state pension will be £177.51 a week, or does it mean they I will receive £112.58, ie this forecast sum, less the COPE estimate and my COPE amount is paid by someone else?

Thanks!

QrizB

k6chris said:

This is still confusing, no matter how many times I try and get my head around it.

My question: 

Does this mean that when I reach SP age, based on current rules, and not including any inflation increases, my state pension will be £177.51 a week, or does it mean they I will receive £112.58, ie this forecast sum, less the COPE estimate and my COPE amount is paid by someone else?

The key is the words "This will not affect your State Pension forecast".
Your New State Pension will be £177.51 per week, unless you pay another year of NI contributions in which case it will be £179.60 a week.

Dazed_and_C0nfused

What do yo think this statement means?

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

k6chris

Dazed_and_C0nfused said:

What do yo think this statement means?

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

This is at the heart of my question.  Is the State Pension forecast the amount of money the government will pay me? If so, why do they confuse the picture by talking about COPE??  Has anyone recently stated getting their state pension and if so, could you give examples of the forecast and COPE, and what actually happened.

MallyGirl

As far as I can see, the COPE figure is a red herring. It gives you the clue that you have another pension elsewhere but it does not affect what the government give you. Your New State Pension will be £177.51 per week, unless you pay another year of NI contributions in which case it will be £179.60 a week.

MallyGirl

Silvertabby said:

MallyGirl said:

yep

Contracted Out Pension Equivalent (COPE)

Your COPE estimate is£31.75 a week.

Then you should have a reasonable DB pension on top of your State pension.

I have a decent DC pension certainly.

[Deleted User]

k6chris said:

Dazed_and_C0nfused said:

What do yo think this statement means?

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

This is at the heart of my question.  Is the State Pension forecast the amount of money the government will pay me? If so, why do they confuse the picture by talking about COPE??  Has anyone recently stated getting their state pension and if so, could you give examples of the forecast and COPE, and what actually happened.

My state pension forecast is slightly higher because I was in and out of SERPS over the years - it is at £182.75 a week and I cannot improve it any more

My COPE is £41.66 a week and this was within a DC with Guaranteed Minimum Pension with an old employer. Because I paid less NI when SERP'd out the DC pension had to guarantee that £41.66 as a minimum

I eventually transferred out of the DC with GMP into a SIPP (having taking advice), the GMP (ie COPE) does now not exist but the state pension web page would never know that

I would have got the £182.75 a week irrespective of whether I had transferred the pot

xylophone

My COPE is £41.66 a week and this was within a DC with Guaranteed Minimum Pension with an old employer. Because I paid less NI when SERP'd out the DC pension had to guarantee that £41.66 as a minimum

A DB with a GMP? Or a hybrid pension perhaps?

the GMP (ie COPE) 

The COPE can be more than just the GMP arising from being a member of a  contracted out scheme between 1978 ND 1997.

See https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/210299/single-tier-valuation-contracting-out.pdf

[Deleted User]

xylophone said:

My COPE is £41.66 a week and this was within a DC with Guaranteed Minimum Pension with an old employer. Because I paid less NI when SERP'd out the DC pension had to guarantee that £41.66 as a minimum

A DB with a GMP? Or a hybrid pension perhaps?

the GMP (ie COPE) 

The COPE can be more than just the GMP arising from being a member of a  contracted out scheme between 1978 ND 1997.

See https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/210299/single-tier-valuation-contracting-out.pdf

A DC with a GMP underpin (well used to be - it's all now in a SIPP)