Another contracted out civil servant question

Bravebart

I have questions about being contracted out of the civil service pension so apologies to the experts on this forum that continue to give advice on this subject that I can't seem to understand.

I've been a civil servant for 35 years and was definitely contracted out. I've also checked my state pension amounts online and these are as below.

Current projected state pension based on contributions: £174.95
COPE: £60.42

My first question: Does being contracted out mean that I won't get the projected £174 or will it be the COPE amount or somewhere in between?

My second question: Is my civil service pension reduced in any way because of being contracted out?

Final question: My wife has a predicted shortfall in state pension and is also a contracted out civil servant. She made a payment to back fill missing state pension before reading the advice on this website that seems to suggest making these payments when contracted out will not (or may not) increase the state pension. Looking at her online pension record it now shows two more full years, so naturally we're confused. Has the money been wasted?

Many thanks to those taking the time to read this and respond.

molerat

COPE does not affect what you will get, you get what the forecast shows.

The only years that may not add to the pension are 2015-16 and earlier, 2016-17 and onwards will add £5.29 per year up to the maximum £185.15

Which years did she buy ?

Post up precisely what your forecasts show and someone here will talk you through it and your options.

Current £.pp amount accrued up to April 2022
Number of pre 2016 NI years full
Number of post 2016 NI years full
Financial year you reach state retirement
Any COPE amount shown
Years which show not full and prices

Dazed_and_C0nfused

Why don't you just post what your forecast actually states.

And your wife's.

The full details as explained by @molerat

Your opening comment suggests you have looked at threads on here yet you have failed to give the basic information that is requested time and time again 🥴

so apologies to the experts on this forum that continue to give advice on this subject that I can't seem to understand.

hyubh

Bravebart said:

My second question: Is my civil service pension reduced in any way because of being contracted out?

There was no way for you to be a member of the civil service pension scheme without being contracted out of SERPs/S2P. So looked at one way, your question assumes a hypothetical that doesn't exist.

That said, if you have any pre-97 membership, under the old system your civil service pension will involve a 'GMP'. This would receive statutory GMP increases from the scheme only, so CPI capped to 3% for post-88 GMP and no increase at all for pre-88 GMP. You wouldn't have actually lost out though, since your 'contracted out deduction' on the state pension side would have been reduced in step, i.e. the difference between the statutory GMP increase and full PI would be paid with your state pension.

Since you reach state pension age under the post-2016 system though, the 'contracted out deduction' mechanism no longer applies. If you were in a private sector DB scheme, that would generally be tough luck (*), as these will usually still apply statutory GMP increases to GMP. Being in a public sector scheme though, you have a small benefit: the scheme will fully increase your GMP in payment. So you can basically forget about the GMP/excess distinction while still enjoying the ability to accrue what, in effect, is additional state pension you wouldn't have accrued under the old system.

(*) That said, many, probably most private sector DB scheme members with a GMP and reaching SPA after 2016 have been winners under the transitional arrangements for the new state pension too. However there are more variables involved in that case, whereas public sector scheme members literally can't be worse off.

Bravebart

I appreciate the offer of detailed calculations but I don't actually need this as I'm content to know that I'm going in the right direction with the state pension and not way off as I feared by the COPE amount.

My wife's additional payments were for financial years 19/20 and 20/21 so after the 2016 ending of contracting out so I'm pleased the money wasn't wasted.

Our records show that I'm about £10 short of full state but will complete that before I retire and my wife's is about £40 short, which given that I now know the additional payment wasn't wasted, we may make more.

Thanks again to all.

molerat

The main thing to remember is that each (post 2016) year adds £5.29 to that April 2022 amount. The forecast tells you how many years you need to reach the  maximum, what it doesn't tell you is that the final year may only add 1p, very important when purchasing years.