Contracted Out Pension Equivalent. 28 February at 1:58PM in Pensions, annuities & retirement planning 7 replies 443 views

david_navigator

I've checked on the government web site and it says that my pension forecast is £185.15, however it also says

Contracted Out Pension Equivalent (COPE)
Your COPE estimate is £55.35 a week

This will not affect your State Pension forecast.

So does this mean that my projection is £185.15 from the state and £55.35 from the private pension provider giving a total of £240.50
OR
£185.15 - £55.35 from the state and £55.35 from the private pension provider, giving a total of £185.15 ?

molerat

The COPE will not affect your state pension, what you see is what you get.  That amount should be included in your contracted out pension, it will not be shown as a separate amount, just in it somewhere.

david_navigator

molerat said:

The COPE will not affect your state pension, what you see is what you get.  That amount should be included in your contracted out pension, it will not be shown as a separate amount, just in it somewhere.

So if I understand correctly I'll get £185.15 from the government and some more from someone else somehow ?

Silvertabby

david_navigator said:

molerat said:

The COPE will not affect your state pension, what you see is what you get.  That amount should be included in your contracted out pension, it will not be shown as a separate amount, just in it somewhere.

So if I understand correctly I'll get £185.15 from the government and some more from someone else somehow ?

Yes.  Do you know which contracted out pension scheme you are/were in?

Dazed_and_C0nfused

david_navigator said:

I've checked on the government web site and it says that my pension forecast is £185.15, however it also says

Contracted Out Pension Equivalent (COPE)
Your COPE estimate is £55.35 a week

This will not affect your State Pension forecast.

So does this mean that my projection is £185.15 from the state and £55.35 from the private pension provider giving a total of £240.50
OR
£185.15 - £55.35 from the state and £55.35 from the private pension provider, giving a total of £185.15 ?

Just out if interest why don't you believe the statement you yourself have posted?

This will not affect your State Pension 

uknick

david_navigator said:

I've checked on the government web site and it says that my pension forecast is £185.15, however it also says

Contracted Out Pension Equivalent (COPE)
Your COPE estimate is £55.35 a week

This will not affect your State Pension forecast.

So does this mean that my projection is £185.15 from the state and £55.35 from the private pension provider giving a total of £240.50
OR
£185.15 - £55.35 from the state and £55.35 from the private pension provider, giving a total of £185.15 ?

The £185.15 amount, was that at the very top of your forecast in the large green box?  Just asking as just below that is an amount you will actually receive based on current years and any COPE.  This section is headed

"You need to continue to contribute National Insurance to reach your forecast

Estimate based on your National Insurance record up to 5 April 2022"

A number of people I know see the figure in the big green box and don't read any further to see what they will actually get, which is less due to their COPE amount.

xylophone

I've checked on the government web site and it says that my pension forecast is £185.15,

Does it also say that you have to continue to contribute to reach your forecast?

With regard to the COPE, it was used once only (6/4/16) to establish your "starting amount" for new state pension.

The SA was the higher of

Old Rules

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

New Rules

{NI years/35 (max) x £155.65 (Full NSP)} - Contracted Out Pension Equivalent. 

You would have been in one of three positions.

(a) SA equal to a  full new state pension

(b) SA more than a full new state pension

(c) SA less than a full new state pension.

See

https://www.dpf.org.uk/explorer/files/TOPPING-UP-YOUR-STATE-PENSION-GUIDE.pdf

produced by Royal London in 2016 to explain the NSP.

With regard to the COPE, this indicates that you were contracted out into a workplace or private pension between 1978 and 2012/2016.

Do you not know the name of the scheme/pension provider?

Prism

david_navigator said:

molerat said:

The COPE will not affect your state pension, what you see is what you get.  That amount should be included in your contracted out pension, it will not be shown as a separate amount, just in it somewhere.

So if I understand correctly I'll get £185.15 from the government and some more from someone else somehow ?

Yes. In my example I was contracted out for a few years when contributing to an Aviva personal pension. In each yearly statement they provided a total of how much that extra COPE amount was worth. However when I later transferred my personal pension to a different provider, this visibility of the COPE amount was lost and it was all just lumped together. All I can say now is that the total value of my personal pension pot is now a bit bigger than it would have been without COPE