State pension and COPE

Zolablue

Hi
I have tried googling this and have found that it just confuses me more the more articles that I read.

My pension forecast says that I will get the full amount on retirement (currently £203 a week) however, I was contracted out of SERPS and had NI contributions paid into a money purchase pension fund.

I have a COPE value of £45 a week and I'm due to reach state pension age in 2034.

Now to the questions....
Is the COPE figure deducted from my state pension (i.e. at current values the government would pay me £203-£45 = £158 a week)? If so, does the COPE value increase with time and inflation?

Thanks 

molerat

Your pension forecast clearly states it has no effect on your pension.  It was only ever used, and only that once, in calculating your 2016 starting amount.

Contracted Out Pension Equivalent (COPE)

Your COPE estimate is £XX.XX a week

This will not affect your State Pension forecast.

Dazed_and_C0nfused

Zolablue said:

Hi
I have tried googling this and have found that it just confuses me more the more articles that I read.

My pension forecast says that I will get the full amount on retirement (currently £203 a week) however, I was contracted out of SERPS and had NI contributions paid into a money purchase pension fund.

I have a COPE value of £45 a week and I'm due to reach state pension age in 2034.

Now to the questions....
Is the COPE figure deducted from my state pension (i.e. at current values the government would pay me £203-£45 = £158 a week)? If so, does the COPE value increase with time and inflation?

Thanks 

Have you read your State Pension forecast and COPE details?

This clearly states it is not deducted from your State Pension entitlement?

Also, have you really accrued £203/week or is that the amount you will accrue if you contribute for a number of future years?

You do need to read the forecast carefully.

Zolablue

Thanks for the response molerat. It's unfortunate that neither my wife nor myself understood the clear statement in the pension forecast. So, thank you for absolutely clearly stating this. That means that we will have a few quid more each week in our retirement. As you might be able to tell, I really couldn't understand the "starting amount".

At the risk of upsetting you further by asking an obvious question (at least to those of you who actually understand pensions) should I be able to transfer my SERPS pension plan to a different supplier if I so wished?

Believe it or not, I am not a stupid person but when it comes to pensions I really struggle to get my head around them (I appreciate that my 2 posts will appear to contradict my statement on my stupidity)

Zolablue

Dazed_and_C0nfused said:

Zolablue said:

Hi
I have tried googling this and have found that it just confuses me more the more articles that I read.

My pension forecast says that I will get the full amount on retirement (currently £203 a week) however, I was contracted out of SERPS and had NI contributions paid into a money purchase pension fund.

I have a COPE value of £45 a week and I'm due to reach state pension age in 2034.

Now to the questions....
Is the COPE figure deducted from my state pension (i.e. at current values the government would pay me £203-£45 = £158 a week)? If so, does the COPE value increase with time and inflation?

Thanks 

Have you read your State Pension forecast and COPE details?

This clearly states it is not deducted from your State Pension entitlement?

Also, have you really accrued £203/week or is that the amount you will accrue if you contribute for a number of future years?

You do need to read the forecast carefully.

Yes, apparently I have already accrued the number of required years (according to my statement and NI record). I have read that there have been some errors in the online system but, assuming mine isn't wrong, it definitely says that I have reached the maximum amount 

Zolablue

When I click through to see my NI record it says that I have 41 years of full contributions. 

Dazed_and_C0nfused

Zolablue said:

When I click through to see my NI record it says that I have 41 years of full contributions. 

Some people under transitional rules (which you are) need about 50 years so having 41 years doesn't really mean much.

Does your forecast (not the headline figure) make it clear you have already accrued £203.85 and even if you continue working and adding additional qualifying years you won't be able to improve that figure nay further???

Zolablue

Dazed_and_C0nfused said:

Zolablue said:

When I click through to see my NI record it says that I have 41 years of full contributions. 

Some people under transitional rules (which you are) need about 50 years so having 41 years doesn't really mean much.

Does your forecast (not the headline figure) make it clear you have already accrued £203.85 and even if you continue working and adding additional qualifying years you won't be able to improve that figure nay further???

Well, at the bottom of the screenshot it says that "You cannot improve your forecast any more"
It then goes on to say that I will still need to pay national insurance whilst I'm working until my retirement date. 

There's nothing about requiring extra years. My wife's statement clearly states that she has 3 more years to go to get the full amount. I can't see any similar statement on my forecast summary 

Dazed_and_C0nfused

Zolablue said:

Dazed_and_C0nfused said:

Zolablue said:

When I click through to see my NI record it says that I have 41 years of full contributions. 

Some people under transitional rules (which you are) need about 50 years so having 41 years doesn't really mean much.

Does your forecast (not the headline figure) make it clear you have already accrued £203.85 and even if you continue working and adding additional qualifying years you won't be able to improve that figure nay further???

Well, at the bottom of the screenshot it says that "You cannot improve your forecast any more"
It then goes on to say that I will still need to pay national insurance whilst I'm working until my retirement date. 

There's nothing about requiring extra years. My wife's statement clearly states that she has 3 more years to go to get the full amount. I can't see any similar statement on my forecast summary 

Sounds like you have reached your maximum then and the £203.85 will only change for the annual triple lock increases now.

Zolablue

Dazed_and_C0nfused said:

Zolablue said:

Dazed_and_C0nfused said:

Zolablue said:

When I click through to see my NI record it says that I have 41 years of full contributions. 

Some people under transitional rules (which you are) need about 50 years so having 41 years doesn't really mean much.

Does your forecast (not the headline figure) make it clear you have already accrued £203.85 and even if you continue working and adding additional qualifying years you won't be able to improve that figure nay further???

Well, at the bottom of the screenshot it says that "You cannot improve your forecast any more"
It then goes on to say that I will still need to pay national insurance whilst I'm working until my retirement date. 

There's nothing about requiring extra years. My wife's statement clearly states that she has 3 more years to go to get the full amount. I can't see any similar statement on my forecast summary 

Sounds like you have reached your maximum then and the £203.85 will only change for the annual triple lock increases now.

Thanks for your help (and Molerat's help). I understand that it can be frustrating answering, what seem to be, stupid questions and so I really appreciate it when you both still make the effort to assist.

squirrelpie

Zolablue said:

should I be able to transfer my SERPS pension plan to a different supplier if I so wished?

It depends on the details of your existing pension (which you call your SERPS pension). If it is a DC pension then probably yes, unless it has protected rights. If it is a DB pension then probably no. There are many more details, hence the 'probably'.