Contracting Out and COPE | Shropshire County Pension fund

Shropshire County Pension fund

Taking care of your Local Government Pension in Shropshire

Contracting Out and COPE

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In April 2016 a new Single Tier State Pension was introduced. Before this date members of the LGPS held Contracted Out status meaning that they only contributed towards the basic pension tier of the State Pension and did not contribution to the State Second Pension, therefore received a rebate of these NI contributions.

Since the introduction of the new Single Tier State Pension Contracting Out has ceased and members paying into the LGPS in April 2016 will have an increase in their NI contributions as they will no longer be receiving a rebate.

Contracted Out Pension Equivalent (COPE)

From November 2015, the Department of Work and Pensions (DWP) are including a COPE amount on State Pension statements. This is to help people, who have been Contracted Out understand why they may not be entitled to the full amount of the Single Tier State Pension. The COPE will be based on all periods of contracted out service and if you have been a member of more than one contracted out scheme your statement will not show a breakdown. Your pension from the LGPS may be more or less than the COPE amount shown on the statement. For more information see the Q&A or the page on the State Pension. 

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