COPE pension payments

HJHsquared14

My pension forecast shows that I was contracted out of SERPs during the 1980s, and I’m due £75 per week COPE from my pension provider.  I started drawing my pension early because I retired early due to ill health and can’t find references to COPE in the information from the provider.  Do they start paying COPE only when I reach state pension age?  I’ll be 66 in December 2024 and eligible for my state pension at that point so does the provider start paying COPE when my state pension becomes payable? 

Flugelhorn

I don;t think you get an extra £75 from your pension provider, the money is included in the pension you get from them whenever you happen to start getting it 

Dazed_and_C0nfused

HJHsquared14 said:

My pension forecast shows that I was contracted out of SERPs during the 1980s, and I’m due £75 per week COPE from my pension provider.  I started drawing my pension early because I retired early due to ill health and can’t find references to COPE in the information from the provider.  Do they start paying COPE only when I reach state pension age?  I’ll be 66 in December 2024 and eligible for my state pension at that point so does the provider start paying COPE when my state pension becomes payable? 

No, it's normally just an invisible element of your existing pension.

Have you checked your State Pension forecast (in detail) and understand exactly what you will get and if that can be improved?

dunstonh

My pension forecast shows that I was contracted out of SERPs during the 1980s, and I’m due £75 per week COPE from my pension provider.

That isn't how it works.

Contracting out of SERPs is done multiple ways.   For example, contracting out using a personal pension only started in 1988.    So, if yours is pre-88 than it means it was done differently.

 I started drawing my pension early because I retired early due to ill health and can’t find references to COPE in the information from the provider. 

You mention "provider".  That suggests it is a personal pension rather than an occupational pension.  Personal pensions created a protected rights account that received your contracting out rebates each year.   However, over decade ago, protected rights were abolished and reclassified as non-protected rights.    They could be mixed in with other non-protected rights benefits (i.e. those built up with your own contributions)

If your reference to provider was incorrect and it was an occupational pension (such as defined benefit scheme) then it will be different.

 Do they start paying COPE only when I reach state pension age?

No.    Your provider gave you a fund value and the included the rebates received plus investment growth.  When you started drawing on your pension, either by drawdown or annuity, then that is already taken into account.

One of the benefits of contracting out with a personal pension was the ability to get access to the funds earlier than state pension age and (due to a later rule change) take 25% of the pension value as a tax free lump sum.

HJHsquared14

That’s really not a helpful answer, there’s more goggledegook in it than on the Government website!

It’s an occupational pension paid monthly into my bank account by Prudential.  Are you trying to tell me that what I get paid currently per month includes an amount to represent the COPE figure quoted on the government website and I won’t get any more when I reach state pension age in December?  Simple yes or no required 

Flugelhorn

HJHsquared14 said:

That’s really not a helpful answer, there’s more goggledegook in it than on the Government website!

It’s an occupational pension paid monthly into my bank account by Prudential.  Are you trying to tell me that what I get paid currently per month includes an amount to represent the COPE figure quoted on the government website and I won’t get any more when I reach state pension age in December?  Simple yes or no required 

yes  that is correct 

Marcon

HJHsquared14 said:

That’s really not a helpful answer, there’s more goggledegook in it than on the Government website!

It’s an occupational pension paid monthly into my bank account by Prudential.  Are you trying to tell me that what I get paid currently per month includes an amount to represent the COPE figure quoted on the government website and I won’t get any more when I reach state pension age in December?  Simple yes or no required 

You won't get any more from your occupational pension when you reach SPA.

xylophone

It’s an occupational pension paid monthly into my bank account by Prudential. 

Do you mean that you were a member of Prudential's own pension scheme for their employees or that your occupational pension scheme is administered by Prudential?

You mention being a member of the scheme and contracted out in the eighties - it seems likely that the scheme in question was a contracted out salary related pension scheme.

The State Earnings Related Pension Scheme was an Additional State Pension  Scheme introduced in 1978 - employers and employees paid a higher rate of National Insurance to qualify for an earnings related element on top of the basic state pension.

It was possible for employers to "contract out" of SERPS if they provided an occupational scheme that paid benefits at least as great as would be provided under SERPS. Usually scheme benefits were much higher than the minimum.



Contracted Out employers/employees paid a lower rate of NI because of this.

This means that part of  the pension that you receive from your scheme is what is known as the Guaranteed Minimum Pension (n your case equivalent to the COPE).



On 6/4/16 you were still under state pension age so that your "starting (foundation) amount" for New State Pension needed to be established.

It was the HIGHER of

Old Rules

NI Qualifying Years/30 x Full Basic State Pension + ( Additional State Pension - Deduction for Contracting Out)

New Rules

(NIQY/35 x Full NSP) - Contracted Out Pension Equivalent.

If the SA was under a full NSP, it was possible (depending on circumstances) to improve it up to (but not in excess of) a full NSP via NI  contributions or  credits.

Assuming that you are male, you have now passed age 65 so that you may well find that you will be receiving a letter from Prudential concerning future increases on your occupational pension.

It would be usual for the GMP portion of your occupational pension to be split out from the excess - pre 88 GMP would receive no increase from the scheme/post 88 GMP would receive increases of up to 3% CPI from the scheme while the balance (excess over GMP) would increase under scheme rules.

You can check the above in the scheme guide.

cutestkids

HJHsquared14 said:

That’s really not a helpful answer, there’s more goggledegook in it than on the Government website!

It’s an occupational pension paid monthly into my bank account by Prudential.  Are you trying to tell me that what I get paid currently per month includes an amount to represent the COPE figure quoted on the government website and I won’t get any more when I reach state pension age in December?  Simple yes or no required 

That's a very rude response to someone trying to help you understand how your pension and the COPE element works.
The responses you have had give a very clear answer to your question. Maybe take the time to read them carefully and you may actually learn about how your pension works.

Marcon

cutestkids said:

HJHsquared14 said:

That’s really not a helpful answer, there’s more goggledegook in it than on the Government website!

It’s an occupational pension paid monthly into my bank account by Prudential.  Are you trying to tell me that what I get paid currently per month includes an amount to represent the COPE figure quoted on the government website and I won’t get any more when I reach state pension age in December?  Simple yes or no required 

That's a very rude response to someone trying to help you understand how your pension and the COPE element works.
The responses you have had give a very clear answer to your question. Maybe take the time to read them carefully and you may actually learn about how your pension works.

I agree that a thank you from OP wouldn't have gone amiss, but the response indicates two things: (a) the high level of frustration and confusion pensions frequently generate and (b) the lack of enthusiasm for a deep dive into 'understanding' when all that's required is a simple explanation - in this case a yes/no. Not everyone who comes onto this side wants swathes of technical guff!