When is COPE Pension Paid? Understanding Contracted-Out Pensions

If you have checked your UK State Pension forecast, you may have come across the term COPE (Contracted-Out Pension Equivalent). Many people are unsure what this means and whether it affects when or how they receive their pension.

COPE relates to past periods when you were contracted out of the Additional State Pension and instead paid lower National Insurance contributions. This means that part of your pension comes from a workplace or private pension scheme rather than the State Pension itself.

Understanding how and when COPE is paid can help you plan your retirement finances and avoid confusion when checking your pension entitlements.

What is COPE and How Does It Work?

COPE stands for Contracted-Out Pension Equivalent. It represents an estimate of the additional pension amount you would have received from the State Pension if you had not been contracted out. Instead, this portion of your pension is paid by a workplace or private pension scheme that replaced your Additional State Pension contributions.

If you were in a workplace pension scheme that contracted you out before April 2016, the scheme paid reduced National Insurance contributions on your behalf. In exchange, your workplace pension was designed to provide a similar or better benefit than the Additional State Pension you opted out of.

COPE does not affect your basic State Pension amount, but it explains why some people receive less than the full new State Pension if they were contracted out.

When is COPE Pension Paid?

Unlike the State Pension, which is paid by the government when you reach State Pension age, your COPE pension is paid by your former workplace or private pension provider. This means:

• The payment date of your COPE pension depends on the rules of your pension scheme.

• Some workplace pensions allow access from age 55 (rising to 57 in 2028).

• If your pension is a Defined Benefit (Final Salary) scheme, you may have a set pension age (e.g., 60 or 65).

• If your pension is a Defined Contribution scheme, you can choose when to access it after reaching the eligible withdrawal age.

Does COPE Affect the State Pension?

Your COPE amount is not deducted from your State Pension—instead, it explains why some people do not qualify for the full new State Pension (£203.85 per week as of 2023/24).

For example, if your pension forecast shows a lower State Pension amount, it may be because you were contracted out for part of your working life. The COPE amount is a separate pension payment you receive from your workplace or private pension scheme.

How to Find Out When Your COPE Pension Will Be Paid

To check when and how you will receive your COPE pension:

1. Review Your Pension Forecast – Check your State Pension statement on the UK Government website to see if you have a COPE amount listed.

2. Contact Your Pension Provider – If you were in a contracted-out workplace pension, your employer or scheme provider can confirm when payments will start.

3. Check Your Pension Scheme Rules – If you have a Defined Benefit pension, it may have a fixed retirement age for payments. If you have a Defined Contribution scheme, you may have flexible access from age 55.

Final Thoughts

Your COPE pension is paid by your workplace or private pension scheme, not the government. The payment date depends on your specific pension scheme rules, and you may be able to access it from age 55 or later, depending on the type of pension you have.

While COPE affects how much State Pension you receive, it does not reduce your State Pension payments. Instead, it reflects the portion of your retirement income that will be provided by a separate pension scheme. If you are unsure about when your COPE pension will be paid, checking with your pension provider is the best way to get accurate information.