SERPS/COPE confused

R.j.Belcher

Hi can somebody please explain, in very simple terms how this effects me? I am 53 and was contracted out in c1990 until it ended in 2016, I have a private pension from this with C£70k in it. My state pension forecast says I will get £203.85, the maximum, then on another page a COPE estimate of £37.97. So am I likely to recieve £203.85 or £165.88? Will the years since the contracting out ended change this? I plan to work full time until 60-63 the part time until 67. Will these extra 21 years reduce my COPE, and roughly by how much each year?
thanks
Rob 

pinnks

COPE was only used to reflect the fact that you had been contracted out, in the calculation of your "starting amount" to move you from the old rules to the new in 2016.  It is not deducted from your forecast and is not changed by any NI you pay in future.  You can simply ignore it. 

From 2016/17 onwards you add 1/35 x £max for each NI year you fill through mandatory NI payments, NI credits or voluntary payments until you either reach the max or reach state pension age.  

Dazed_and_C0nfused

R.j.Belcher said:

Hi can somebody please explain, in very simple terms how this effects me? I am 53 and was contracted out in c1990 until it ended in 2016, I have a private pension from this with C£70k in it. My state pension forecast says I will get £203.85, the maximum, then on another page a COPE estimate of £37.97. So am I likely to recieve £203.85 or £165.88? Will the years since the contracting out ended change this? I plan to work full time until 60-63 the part time until 67. Will these extra 21 years reduce my COPE, and roughly by how much each year?
thanks
Rob 

Have you actually accrued £203.85 or do you need to add a few more years to reach that amount?

R.j.Belcher

Thanks for the reply, so essentally I get my full state pension and my £70k pot, like having my cake and eating it!

pinnks

Sort of.  Had the rules not changed in 2016 you would have got up to a full basic pension of £156.20 under the old rules plus your contracted out pension (instead of additional pension from SERPS or S2P, out of which you were contracted).  Now you have the opportunity, through filling 2016/17 onwards to increase the state pension element to £203.85 per week and still of course get your workplace/private pension.  So more a case of having more cake and eating that too...
   

R.j.Belcher

Dazed_and_C0nfused said:

R.j.Belcher said:

Hi can somebody please explain, in very simple terms how this effects me? I am 53 and was contracted out in c1990 until it ended in 2016, I have a private pension from this with C£70k in it. My state pension forecast says I will get £203.85, the maximum, then on another page a COPE estimate of £37.97. So am I likely to recieve £203.85 or £165.88? Will the years since the contracting out ended change this? I plan to work full time until 60-63 the part time until 67. Will these extra 21 years reduce my COPE, and roughly by how much each year?
thanks
Rob 

Have you actually accrued £203.85 or do you need to add a few more years to reach that amount?

I am 18 months away from the 35 qualifying years, so nearly there. 

TadleyBaggie

The mythical 35 years again! That only applies to someone who started paying NI after April 2016. What exactly does your forecast say?

Dazed_and_C0nfused

R.j.Belcher said:

Dazed_and_C0nfused said:

R.j.Belcher said:

Hi can somebody please explain, in very simple terms how this effects me? I am 53 and was contracted out in c1990 until it ended in 2016, I have a private pension from this with C£70k in it. My state pension forecast says I will get £203.85, the maximum, then on another page a COPE estimate of £37.97. So am I likely to recieve £203.85 or £165.88? Will the years since the contracting out ended change this? I plan to work full time until 60-63 the part time until 67. Will these extra 21 years reduce my COPE, and roughly by how much each year?
thanks
Rob 

Have you actually accrued £203.85 or do you need to add a few more years to reach that amount?

I am 18 months away from the 35 qualifying years, so nearly there. 

35 years is of absolutely no relevance to you.  

Those rules apply to people starting to pay NI from 2016.

You are under transitional rules where you have your own specific number of years which are needed.  Based on other posters experience it could be as few as 28 or as many as 50.

What exactly does your forecast say.

molerat

The figure circled is the important one

R.j.Belcher

Looks like I have done enough years as mine just says....
Then 

£203.85 is the most you can get

You cannot improve your forecast any more.

molerat

Yep, you are already there.  Nothing you do right up until 2036 will add to that amount.