PPRuNe Forums - View Single Post - Pension National Insurance Contributions Retrospective Change to Opted-Out
Old 2nd Apr 2017, 13:05
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F.O.D
 
Join Date: Sep 2006
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JTO and OF. My understanding is that the "COPE" deduction is rather theoretical. In other words, they compared your pension under the old scheme with the new one on 5 April 2016. So OF might have accrued £119 and some additional SERPS/S2P under the old scheme adding up to £135.74 this was compared with the new scheme which was £155 minus COPE of £48 (ie £107) because of contracting out. Your starting amount would have been the higher of the two figures - therefore £135.74. Since contracting out finished last year, any NI paid since Apr 16 adds to your pension starting amount until you reach £155. Provided you pay the full stamp, you get over £4.40 per week extra pension for each year of NI. So as per the estimate provided to you, you have to work/pay NI for 5 more years to reach the full £155 figure.

That is how I understand it works as I am in a similar position. I would, of course stand to be corrected by professionals such as Al R or VOXPOP.
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