Confused by COPE ....wanting to buy missing years but...

Menber

I'm due to reach state pension age in Dec 2024, I have 41 full years, my pension forecast is £153.68 a week and the forecast says it can be improved to £185.15 a week which seems a good idea!

I worked in the civil service until 2014 and am drawing my civil service pension.

I  was contracted out, my COPE estimate is apparently £105.31. Having read all I can about COPE, I kind of understand it but I'm still a little confused!

I have gaps in my NI record from 2015 until the present time, and from my NI record I know the amounts to fill them.

I haven't been working since end of 2014 so I believe this is why I have the gaps as I havent paid any NI.

Having contacted HRMC they have told me not to pay for the 2015 year as it won't count because I already had 30 years in 2016 when the system changed.

It seem that I can pay around £4800 to buy the missing years plus the next two as yet unknown years before  December2024 and I will get the full £185.15 but Im still a little uncertain if COPE has any influence and that my state pension will be less than the forecast because the forecast doesnt reflect it or something?

Can anyone reassure me (or not) before I spend the money buying the missing years.

TadleyBaggie

Ignore the COPE, the current forecast will not change due to it.

Linton

COPE was a factor used to calculate the pension forecast.  It doesnt matter now.  I guess they include it as a flag to say that your pension is less than  you may have expected because you were contracted out of SERPs.

What you have understood HMRC to say seems as expected.

molerat

I'm due to reach state pension age in Dec 2024, I have 41 full years, my pension forecast is £153.68 a week and the forecast says it can be improved to £185.15 a week which seems a good idea!

Is that your current amount up to April 2022 or the top line forecast amount ?

xylophone

Your COPE was used once only (6/4/16) to establish your "starting amount" for NSP.

Two calculations were done - your starting amount was the higher of the two.

Old Rules

NI years (max 30)/30 x Full Basic State Pension (£119.30) + (Additional State Pension - Deduction for Contracting Out).

New Rules

NI years (max 35)/35 x Full NSP (£155.65) - COPE.


Obviously, in your case, the Old Rules gave your SA for NSP.

It appears that you had retired from paid employment pre inception of NSP.

You still had a number of years post inception before you reached SPA and therefore had the opportunity to improve your "starting amount" up to (but not exceeding) a full NSP via  NI contributions or credits.

See https://www.gov.uk/government/publications/new-state-pension-if-youve-been-contracted-out-of-additional-state-pension/the-new-state-pension-transition-and-contracting-out-fact-sheet

https://www.gov.uk/voluntary-national-insurance-contributions

Menber

molerat said:

I'm due to reach state pension age in Dec 2024, I have 41 full years, my pension forecast is £153.68 a week and the forecast says it can be improved to £185.15 a week which seems a good idea!

Is that your current amount up to April 2022 or the top line forecast amount ?

Thats the current amount up to this year on the forecast today

Crabby

Pay NI for 6 post 2016 years to get the full pension, it'll cost around £4.6k.

Dazed_and_C0nfused

Menber said:

I'm due to reach state pension age in Dec 2024, I have 41 full years, my pension forecast is £153.68 a week and the forecast says it can be improved to £185.15 a week which seems a good idea!

I worked in the civil service until 2014 and am drawing my civil service pension.

I  was contracted out, my COPE estimate is apparently £105.31. Having read all I can about COPE, I kind of understand it but I'm still a little confused!

I have gaps in my NI record from 2015 until the present time, and from my NI record I know the amounts to fill them.

I haven't been working since end of 2014 so I believe this is why I have the gaps as I havent paid any NI.

Having contacted HRMC they have told me not to pay for the 2015 year as it won't count because I already had 30 years in 2016 when the system changed.

It seem that I can pay around £4800 to buy the missing years plus the next two as yet unknown years before  December2024 and I will get the full £185.15 but Im still a little uncertain if COPE has any influence and that my state pension will be less than the forecast because the forecast doesnt reflect it or something?

Can anyone reassure me (or not) before I spend the money buying the missing years.

That doesn't seem necessary.

Six post 2016 years should be sufficient to reach your personal maximum of £185.15/week.

Secret2ndAccount

Last year cost £800.80   2020/21 was £795.60. Beyond 2 years, they are all charged at the current price which is £824.20.  You might want to consider buying them soon, because the prices go up with inflation. So if you wait until after April 6th, expect to pay 10% more. Of course, it's your choice - you could wait until 2024 before parting with your money. After Apr 6th 2023 you lose the right to go back more than 6 years to buy, but that doesn't seem to be a problem for you.

Agree, any 6 years after 2016 will get the job done. The final part-year before your retirement date cannot count towards your 6 years.