Contracted out, I am so very confused!

ChasingtheWelshdream

I am only early 40s, worked since 1998 and have not paid any attention to pensions except for paying into my DB LGPS pension since 2009. I have absolutely no recollection of anything pension-wise prior to that (hangs head in shame).

I have been checking my state pension forecast and have full years every year. Some have credits whilst caring for young children, but no gaps are showing.

It says "your forecast is £221.20 a week". 

You need to continue to contribute National Insurance to reach your forecast

Estimate based on your National Insurance record up to 5 April 2024

£195.43 a week

Forecast if you contribute another 5 years before 5 April 2049

£221.20 a week

£221.20 is the most you can get

OK, I get this bit. I have to contribute for 5 years (which seems rather low when I class myself as young?!)

Then it says: 

You’ve been in a contracted-out pension scheme

Like most people, you were contracted out of part of the State Pension.

I have been reading the guidance and this is where I get confused about what I need to do. Does it mean that one of my employers started a company pension that I will be due at retirement age? I have only worked for 4 employers, and two of them are in the LGPS which I began contributing to in 2009. So I assume this would be the previous two private companies?  I have never had any correspondence and can find nothing in my old employment paperwork, so do I need to use the search facility (both companies come up) and contact them to see if there is anything in my name? I no longer have any payslips which the guidance says to check.

If so, one of the company's pension details are the home address of the owner. The company was dissolved years ago and they no longer live there, so I don't think that is of much use.

Or have I got completely the wrong end of the stick?

I have been reading and reading but still can't quite grasp what contracted out meant, and how it affects me when I have no recollection of it.

Dazed_and_C0nfused

Does it mean that one of my employers started a company pension that I will be due at retirement age? 

Yes, that would be your LGPS pension.

You paid less NI for several years whilst in LGPS.  That has now ended but you will still get your LGPS pension and the standard new State Pension (once you add the final 5 years you need).

ChasingtheWelshdream

Ahh, I had no idea! I thought it must have been one of my previous employers that I paid no attention to.

So when I look at my LGPS statements and projections, is there anything I need to be aware of? Or is it simply my LGPS is one payout and  the state pension another. They are not linked at all now?

So sorry if this is a completely daft question. I

Dazed_and_C0nfused

ChasingtheWelshdream said:

Ahh, I had no idea! I thought it must have been one of my previous employers that I paid no attention to.

So when I look at my LGPS statements and projections, is there anything I need to be aware of? Or is it simply my LGPS is one payout and  the state pension another. They are not linked at all now?

So sorry if this is a completely daft question. I

There isn't an explicit amount as part of your LGPS pension but I suspect your LGPS pension entitlement far outweighs the COPE amount.

Hopefully you already realise this but for the avoidance of doubt the COPE amount is not deducted from your State Pension entitlement.  Once you add those 5 extra years you will be entitled to £221.20/week State Pension.

Flugelhorn

ChasingtheWelshdream said:

Ahh, I had no idea! I thought it must have been one of my previous employers that I paid no attention to.

So when I look at my LGPS statements and projections, is there anything I need to be aware of? Or is it simply my LGPS is one payout and  the state pension another. They are not linked at all now?

So sorry if this is a completely daft question. I

yes that is right they are not connected - you get one pension from LGPS and the other from the state and they are not linked. 

ChasingtheWelshdream

Thank you both, that has cleared things up for me 🙂