Who Pays My COPE Pension? Contracted-Out Pensions Explained

Your COPE pension is paid by your workplace or private pension provider, not the government. Learn how to find out who pays your COPE pension and when you can access it.

If you have checked your UK State Pension forecast, you may have seen a reference to COPE (Contracted-Out Pension Equivalent). This can be confusing, as COPE is not a separate pension paid by the government, but rather an estimate of pension benefits owed to you by a workplace or private pension scheme.

Since COPE represents pension benefits you built up while contracted out of the Additional State Pension (SERPS or State Second Pension), it is paid by the pension provider linked to your former employer, rather than the government. Understanding who pays your COPE pension and how to access it is essential for retirement planning.

Who Pays COPE?

Your COPE pension is paid by the workplace or private pension scheme you were enrolled in when you were contracted out. This could be:

  • A Workplace Pension Scheme – If you were in a company pension while working, your former employer’s pension provider is responsible for paying the COPE-related benefits.

  • A Private Pension Provider – If you had a personal pension and opted for contracting out, the pension provider managing that scheme will pay your COPE benefits.

  • A Public Sector Pension Scheme – If you worked in the NHS, police, fire service, armed forces, or other public sector jobs, your COPE pension will be part of your public sector pension payments.

Does the Government Pay COPE?

No, COPE is not paid by the government. The government only pays the State Pension, which is based on your National Insurance contributions.

Since COPE represents the portion of pension you built up while contracted out, it is managed by your private or workplace pension scheme instead. The government only estimates your COPE amount to help you understand how much of your retirement income will come from non-State Pension sources.

How Do I Find Out Who Pays My COPE Pension?

If you are unsure who is responsible for paying your COPE pension, you can:

  1. Check Your State Pension Forecast – The government provides an estimate of your COPE amount, but not which provider pays it.

  2. Contact Your Former Employer – If you were in a workplace pension, your employer should have records of which pension scheme you were contracted out with.

  3. Check Old Pension Statements – Look for letters, emails, or documents from previous pension providers.

  4. Use the Pension Tracing Service – If you have lost track of an old pension, the UK Pension Tracing Service can help locate your contracted-out pension provider.

When is COPE Pension Paid?

Unlike the State Pension, which is paid automatically at State Pension age, your COPE pension follows your workplace or private pension scheme’s rules. This means:

  • If your COPE benefits are part of a Defined Contribution pension, you may be able to access them from age 55 (rising to 57 in 2028).

  • If they are part of a Defined Benefit (Final Salary) pension, payments may start at a set retirement age (such as 60 or 65).

  • If you have multiple pension schemes, your COPE benefits may be spread across different providers, each with its own payment terms.

Can I Access My COPE Pension Early?

You can access your COPE pension based on the rules of the scheme holding your benefits. If your COPE benefits are in a Defined Contribution pension, you can start withdrawing funds from age 55. If they are in a Final Salary scheme, you may need to wait until the scheme’s official retirement age.

Early access before 55 is generally not allowed unless you qualify due to serious ill health.

Final Thoughts

Your COPE pension is paid by the workplace or private pension scheme you were contracted out with, not the government. If you are unsure who manages your COPE benefits, contact your previous employers or use the Pension Tracing Service to track down your pension provider.

Since COPE pensions are paid under different rules than the State Pension, it is important to check when and how you can access your payments. Understanding who is responsible for paying your COPE pension ensures you can properly plan for your retirement.