Contracted out - Never Knew!!

SINDYGIRL

I'm due to get my state pension in 2024...over the last 18mths or so I've been contacting DWP to find out how much I'll receive...I was always told I'd received the full amount and received a letter last August stating this. I contracted gov.uk today just to ask something else and was told that they need to get a physical forecast as the one on the website isn't correct. The website states I have 44 yrs of full contributions with 3 yrs when I didnt contribute enough...they have been the last 3 yrs since I retired from teaching...although the website states all is OK and I have the same info in writing they are now saying I was contracted out between 1987-1990 and 2006-2016...I can't understand how this never showed up before . Gov.uk say it could take up to 10 weeks to hear back from hmrc...this seems crazy!! Please advise...is there a quicker way to find out exactly how much I'll get?
Also how come no one ever told me I was contracted out and the impact of that. My forecast although now aledgedly incorrect states I would have received £203.85 per week...now I'm worrying I'll receive a lot less. How could Gov.uk website have been wrong all this time?

Daniel54

Your teachers'pension booklet will have stated that you were contracted out and what that meant at the time

I will leave it to others to address your other concerns, but your post  seems rather muddled.

SINDYGIRL

I obviously never looked at it...my mistake I know...I just feel that I've been led astray by my incorrect details on gov.uk...

Marcon

SINDYGIRL said:

I'm due to get my state pension in 2024...over the last 18mths or so I've been contacting DWP to find out how much I'll receive...I was always told I'd received the full amount and received a letter last August stating this. I contracted gov.uk today just to ask something else and was told that they need to get a physical forecast as the one on the website isn't correct. The website states I have 44 yrs of full contributions with 3 yrs when I didnt contribute enough...they have been the last 3 yrs since I retired from teaching...although the website states all is OK and I have the same info in writing they are now saying I was contracted out between 1987-1990 and 2006-2016...I can't understand how this never showed up before . Gov.uk say it could take up to 10 weeks to hear back from hmrc...this seems crazy!! Please advise...is there a quicker way to find out exactly how much I'll get?
Also how come no one ever told me I was contracted out and the impact of that. My forecast although now aledgedly incorrect states I would have received £203.85 per week...now I'm worrying I'll receive a lot less. How could Gov.uk website have been wrong all this time?

Your contract of employment was required to state whether or not you were in contracted out employment.

Your payslips will have shown that you paid reduced rate NI while you were in contracted out employment.

The information about your pension scheme will have shown that you were in contracted out employment.

Your annual benefit statements will have shown that you were contracted out and confirmed the basis on which this was achieved (Guaranteed Minimum Pension in the earlier period, Reference Scheme Test in the later period).

SINDYGIRL

Thankyou for the  info...I'm obviously going to receive a reduced state pension...just wish I'd realised...

molerat

What exactly does your on line forecast show ?  Are you sure you are not misunderstanding it ?  The top line is what you can achieve going forward providing you contribute more years as shown in the following data, it is not a statement of what you will get.

Post up the details and someone will talk you through it.

Current £££.pp amount accrued up to April 2022 (or 2023 as some have been updated)
Number of pre 2016 NI years full
Number of post 2016 NI years full
Tax year you reach state retirement
Any COPE amount shown, in a click link in "You've been in a contracted-out pension scheme" if there is one.
Years which show not full and prices

SINDYGIRL

On the gov.uk website my forecast says I  will receive 203.85 per week...there is a link to show my NI record and that's where it says I have 44 full years contributions and 3 years of no contributions ( I retired early in 2018)... no mention of COPE?
However DWP told me today that this info is wrong because its not showing the contracted out time.. I just want an idea of how much I may receive as I'm not going to get 203.85 now I'm sure.

p00hsticks

SINDYGIRL said:

On the gov.uk website my forecast says I  will receive 203.85 per week...there is a link to show my NI record and that's where it says I have 44 full years contributions and 3 years of no contributions ( I retired early in 2018)... no mention of COPE?
However DWP told me today that this info is wrong because its not showing the contracted out time.. I just want an idea of how much I may receive as I'm not going to get 203.85 now I'm sure.

As you had over 30 years NI as at April 2016, your starting amount will have been at least equivalent to the old basic state pension amount - currently £156.20. And it sounds as if you can probably add two more full years to that for 2016-17 and 2017-18 which would add another £11.64 to that amount. 
So you'll get at least £167.84 as a minimum. 

Are you absolutely sure there is no mention of a COPE amount ? 
It won't be on the main page of the forecast - you need to click through a link where it says something like 'you have been contracted out at some point'.      

Although it may not seem like it at the moment, you are potentially one of the winners from the introduction of the new state pension - under the old system you may have only received the basic state pension amount, but you now have been given an opportunity to increase it further, even if that involves making voluntary contributions for the years since you retired. 

SINDYGIRL

Thankyou...you have made me feel more optimistic...there is no mention of a cope amount or any link that I can see...I suppose I'll just have to wait the said 10 weeks to get the new forecast from dwp via hmrc...

kaMelo

Have a look at this picture which should look like your online forecast.
The very bottom line where it states "you where contracted out of part of the state pension" is a link to details on your COPE figure.

[Deleted User]

You also have the opportunity to pay voluntary NI for the years 2018/2019 2019/2020 2020/2021 2021/2022 and 2022/2023. These could well close your gap. 

I am now paying my 47th and final year to ensure I receive the full new pension minus a few pence. Like yourself I was contracted out for most of my career. As a semi-retired teacher myself I am surprised you didn’t realise the details of the TPS scheme.