Good (and short!) explanation of COPE

molerat

The COPE is already deducted from your 2016 new pension starting amount and a contracted out deduction was made from the old pension additional pension amount giving you the higher of the two calculations at the start of the new pension.

marky_b_2

Thanks, that explains it clearly 👍

gwapenut

If the forecast says "Your forecast is £203.85 a week" and "Your COPE estimate is £42.76 a week", am I right in thinking that the governement will pay me the equivalent of £203.85 when I retire, and that the £42.76 will come (approximately) from my private pensions?

Or will the government knock £42.76 off my £203.85 each week because that was from NI contributions diverted to another scheme?

Dazed_and_C0nfused

gwapenut said:

If the forecast says "Your forecast is £203.85 a week" and "Your COPE estimate is £42.76 a week", am I right in thinking that the governement will pay me the equivalent of £203.85 when I retire, and that the £42.76 will come (approximately) from my private pensions?

Or will the government knock £42.76 off my £203.85 each week because that was from NI contributions diverted to another scheme?

Yes they will and no they won't.

Mick70

if the COPE has no impact on what you will actually receive from the govt in your state pension then they really need to stop quoting it as it becomes so confusing and folk panic that this COPE amount will be deducted from their state pension

MallyGirl

It does matter though if you want to understand how your pension forecast is calculated - for all of us in the transitional period.

The Gov website says:

Contracted Out Pension Equivalent (COPE)

Your COPE estimate is £xx.xx a week

This will not affect your State Pension forecast. The COPE amount is paid as part of your other pension schemes, not by the government.

In most cases the private pension scheme you were contracted out to:

• will include an amount equal to the COPE amount
• may not individually identify the COPE amount

molerat

Mick70 said:

if the COPE has no impact on what you will actually receive from the govt in your state pension then they really need to stop quoting it as it becomes so confusing and folk panic that this COPE amount will be deducted from their state pension

How do you think we can give a detailed breakdown of what you need to pay and which years will and will not add to the pension, COPE is essential in that calculation.

Almost-free

I must be really thick because I can’t get my head around this at all. I’ve been in receipt of my NHS pension since July 2020. My state pension forecast states I will get the full amount of £203.85 a week  but my COPE estimate is £52 a week. I just assumed that when I get my SP they will take off £208 a month before it’s taxed (4x 52( 

This thread however suggests that I will get the full £203.85 a week? ( obviously it will be taxed alongside my NHS pension).
Thanks for the help. 

Dazed_and_C0nfused

Almost-free said:

I must be really thick because I can’t get my head around this at all. I’ve been in receipt of my NHS pension since July 2020. My state pension forecast states I will get the full amount of £203.85 a week  but my COPE estimate is £52 a week. I just assumed that when I get my SP they will take off £108 a month before it’s taxed. 

This thread however suggests that I will get the full £203.85 a week? ( obviously it will be taxed alongside my NHS pension).
Thanks for the help. 

No idea where you get the £108 from but if you have read your State Pension forecast correctly then yes you will receive £203.85/week State Pension from DWP.

No tax will be deducted from it but, if necessary, you will pay more tax on your NHS pension.

You may want to double check your State Pension forecast to make certain you have actually already accrued £203.85.  A surprising number of people see that headline figure and don't seem to bother reading the actual detail below.

Marcon

Almost-free said:

I must be really thick because I can’t get my head around this at all. I’ve been in receipt of my NHS pension since July 2020. My state pension forecast states I will get the full amount of £203.85 a week  but my COPE estimate is £52 a week. I just assumed that when I get my SP they will take off £108 a month before it’s taxed. 

This thread however suggests that I will get the full £203.85 a week? ( obviously it will be taxed alongside my NHS pension).
Thanks for the help. 

Have you read the link in my original post (the first one in this thread)?