COPE ( contracted out pension equivalent)

LookingForwardToRetiremet

Wow thank you that clears that up. Much appreciated 

LookingForwardToRetiremet

Dazed_and_C0nfused said:

LookingForwardToRetiremet said:

Can I pick the brains of all you knowledgeable people again please. 

Husband is 70 this year . Got his state pension in 2018 . Took his nhs pension 5 years earlier.
Hasn't worked since 
His ni record shows 49years no gaps . 
He gets £157 every week ..

Question is why doesn't he get the full pension 

Thank you all 

He does get the full pension he is entitled to.

Depending on when he reached State Pension age ("2018" covers two tax years) he may have been able to pay voluntary NI for 2016:17 and 2017:18 to add £10.58 to his entitlement.

So he's a winner under the new system having paid less NI for many years and then getting the opportunity to add to the State Pension he would have been entitled to.  

What is slightly unfortunate is that because he reached SPA soon after the rules changed he didn't have long enough to build up to the full new State Pension.

The above assumes he hasn't already paid anything (or received NI credits) to make 2016:17 and 2017:18 qualifying years.

Thank you that is so much clearer. Much appreciated 

xylophone

Husband is 70 this year . Got his state pension in 2018 . Took his nhs pension 5 years earlier.
Hasn't worked since 
His ni record shows 49years no gaps . 
He gets £157 every week ..

Question is why doesn't he get the full pension 

At 6/4/16, two calculations were done to establish your husband's starting amount for NSP.

At that stage  he was  fully retired and had more than 35  NI qualifying years.

I The starting amount was the higher of

Old Rules

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

£119.30 + (Additional State Pension - Deduction for Contracting Out).

New Rules

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

£155.65 - COPE.

Your husband's starting amount would have been given by  the old rules calculation.

He had a "COD"/ COPE because when he worked for the NHS, he was a member of a pension scheme that was contracted out of the additional state pension scheme (SERPS/S2P).

Therefore he paid a lower rate of National Insurance.

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

Between 6/4/16 and now, his starting amount has increased under the triple/double lock.

It might be possible for him to make voluntary NI  contributions for the 16/17 and possibly 17/18 tax years depending on when exactly he reached SPA.

Was it post 5/4/18?

Have a look at the chart on p6 here

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

LookingForwardToRetiremet

xylophone said:

Husband is 70 this year . Got his state pension in 2018 . Took his nhs pension 5 years earlier.
Hasn't worked since 
His ni record shows 49years no gaps . 
He gets £157 every week ..

Question is why doesn't he get the full pension 

At 6/4/16, two calculations were done to establish your husband's starting amount for NSP.

At that stage  he was  fully retired and had more than 35  NI qualifying years.

I The starting amount was the higher of

Old Rules

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

£119.30 + (Additional State Pension - Deduction for Contracting Out).

New Rules

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

£155.65 - COPE.

Your husband's starting amount would have been given by  the old rules calculation.

He had a "COD"/ COPE because when he worked for the NHS, he was a member of a pension scheme that was contracted out of the additional state pension scheme (SERPS/S2P).

Therefore he paid a lower rate of National Insurance.

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

Between 6/4/16 and now, his starting amount has increased under the triple/double lock.

It might be possible for him to make voluntary NI  contributions for the 16/17 and possibly 17/18 tax years depending on when exactly he reached SPA.

Was it post 5/4/18?

Have a look at the chart on p6 here

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

Thank you so much for your time . 

My husband has just said my post was not clear enough. 

So he's 70 this year 
He got his state pension in August 2018 
Took his nhs pension 5 years earlier at 60  and returned to work part time in the nhs and completely finished work in 2018 (August) .

Apologies that may change things or not? 

Thank you 

xylophone

He took his NHS pension in 2013 but returned to part time work in the same year.

He was under SPA so if earning the relevant amount, would have paid or been credited with NI.

The calculation to establish his starting amount at 6/4/16 was as previously explained.

It was under a full NSP and he still had one or two years (16/17  - 17/18) before he reached SPA.  

If he was paid or credited with NI for those years making them qualifying years, he would have improved his starting amount, albeit to an amount that was under a full NSP.

If those years are full, then he cannot improve his pension any more.

LookingForwardToRetiremet

Thank you I'm very grateful 🙏 

LookingForwardToRetiremet

xylophone said:

He took his NHS pension in 2013 but returned to part time work in the same year.

He was under SPA so if earning the relevant amount, would have paid or been credited with NI.

The calculation to establish his starting amount at 6/4/16 was as previously explained.

It was under a full NSP and he still had one or two years (16/17  - 17/18) before he reached SPA.  

If he was paid or credited with NI for those years making them qualifying years, he would have improved his starting amount, albeit to an amount that was under a full NSP.

If those years are full, then he cannot improve his pension any more.

You are an amazing resource,  thank you so much 🙌