Contracted out pension NHS

Bunnymummy2022

I'm a retired nurse with a small NHS pension.
I only found out when I recieved my state pension that I was on this COPE scheme and queried why my state pension was lower than forecast.
This meant that my predicted income from both pensions was quite a bit lower than I had planned for. Neither pension forecast had taken this in to account. Very annoying!

molerat

Your NHS pension would have clearly have stated what you would receive, contracting out was irrelevant to that. 

State pension forecasts have always shown what you would actually receive, maybe you made some assumptions there rather than actually checking. 

When did you reach state pension age ?  How much SP are you receiving ?

jem16

Bunnymummy2022 said:

I only found out when I recieved my state pension that I was on this COPE scheme and queried why my state pension was lower than forecast.

State Pension forecasts may show more than one figure and it's important to read all of them and not just the top figure.

It's more than likely that you simply looked at that top figure and didn't read further where it said that you would have to contribute to reach this amount.

dunstonh

This meant that my predicted income from both pensions was quite a bit lower than I had planned for. Neither pension forecast had taken this in to account. Very annoying!

Its hard to see how you could have planned for a higher amount as any state pension forecast under the old system would have been lower than it is now.     And the NHS pension documentation makes it clear it is a contracted out scheme, where you paid less NI, and the annual statements would have shown you the entitlement you had accrued so far (and what you could get if you remained employed to scheme age).

As both pension schemes provide the information, the only conclusion is that you didn't read it.      And you are probably a winner under the new state pension scheme as well by getting more than you would have had it been under the basic state pension alone.

Stubod

..common mistake caused by only reading the "headline" rate. With both NHS, and particulary the SP everything is there in black and white, you just need to make sure you read it all...

xylophone

I was on this COPE scheme and queried why my state pension was lower than forecast.
This meant that my predicted income from both pensions was quite a bit lower than I had planned for.

I am mystified by this.

What exactly did your forecast say?

And how did the COPE impact your NHS pension?

Marcon

Bunnymummy2022 said:

I'm a retired nurse with a small NHS pension.
I only found out when I recieved my state pension that I was on this COPE scheme and queried why my state pension was lower than forecast.
This meant that my predicted income from both pensions was quite a bit lower than I had planned for. Neither pension forecast had taken this in to account. Very annoying!

Forecast by whom? Any pension forecasts, for your state and NHS pension, always took into account the fact that you were 'contracted out' of the State Additional Pension (SERPS, then State Second Pension) while you were building up benefits in the NHS scheme. 

The COPE figures causes utter bewilderment and is probably best ignored - but if you'd like to know more, try this, especially the bit on COPE: https://www.which.co.uk/money/pensions-and-retirement/state-pension/your-state-pension-forecast-explained-a24r12y9jt41

Bunnymummy2022

Thank you for your comments.
 My state pension forecast that I would recieve the maximum as I had full NI contributions. There was never any mention of the contracted out scheme which I knew nothing about.
I had several forecasts for my NHS pension leading up to my retirement and again no mention that part of this included some of my state pension. 

Bunnymummy2022

molerat said:

Your NHS pension would have clearly have stated what you would receive, contracting out was irrelevant to that. 

State pension forecasts have always shown what you would actually receive, maybe you made some assumptions there rather than actually checking. 

When did you reach state pension age ?  How much SP are you receiving ?

I reached state pension age at 63.5 and now get £156 wk. Whereas the forecast said I would recieve the dull amount t as full NI contributions. This means that approx £30 will less than the full pension as this is paid through my NHS pension. The problem is that I didn't know this until I retired as never mentioned!

molerat

What year and month did you reach state pension age ?

You likely misread / misunderstood the forecast as the top line figure would have been the full amount with the caveat of you contributing more years.  Lower down there would have been a figure of what you had accrued to date. Do you still have a copy of that forecast ?  If a post 2016 forecast did indeed show you could achieve the full amount then there is the possibility you could still make that up with voluntary contributions.

jem16

Bunnymummy2022 said:

molerat said:

Your NHS pension would have clearly have stated what you would receive, contracting out was irrelevant to that. 

State pension forecasts have always shown what you would actually receive, maybe you made some assumptions there rather than actually checking. 

When did you reach state pension age ?  How much SP are you receiving ?

I reached state pension age at 63.5 and now get £156 wk. Whereas the forecast said I would recieve the dull amount t as full NI contributions. This means that approx £30 will less than the full pension as this is paid through my NHS pension. The problem is that I didn't know this until I retired as never mentioned!

If you reached SPA at 63.5 then that would be around November 2016. That was barely into the new system. 

When was your last state pension forecast? It’s quite possible that it was from before April 2016 when the new system started. The mention of full state pension referred to the old Basic State Pension which is currently £141.85pw. As you’ve been contracted out you were never going to get the full new state pension as you paid less into the system. However due to the transitional arrangements you’re getting no less than you always expected to have. You seem to have been expecting to receive a full new state pension though. Was there a reason that you thought this as it was never going to be possible for you as you had no time to increase your pension as others have done?

Your NHS pension would mention contracting out but it wouldn’t mention COPE as that’s just an estimate of what you would have got had you not contracted out. 

You haven’t really lost anything but I’m afraid you have based your calculations on assumptions rather than actual facts.