Pension from goverment

I have just had a letter from The Pension Service and it tells me of increase in benefits but at the bottom of the page it says, Contracted-Out Deduction (COD) of £xx.xx.
Any idea what COD is.

Re: Pension from goverment

If you put money into a private pension. It will tell you in the booklet that came with it.

Re: Pension from goverment

You used to be able to contract out of SERPS. It could be to do with that ZX.

Re: Pension from goverment

If you worked for eg NHS, education, police etc which provided in service pensions you were contracted out of part of the national pensions payments ie you paid lower contributions to the state pension. This affects your state pension amount.

Re: Pension from goverment

Yes, Bird is correct. When I had a private pension with Abbey National some years ago
, my financial adviser (the father of a colleague) did it so my SERPS were put into that pension. I think! So because of that my State Second Pension is slightly lower to reflect those fewer contributions.

Re: Pension from goverment

Same with my BT pension, my state pension was made up with what was graduated pensions when I started work ,so my state pension is abut what i would have normally got

Re: Pension from goverment

It depends on when you retire. Up to 2016, things are still the same and a full basic pension is £118 a week for 30 qualifying years. After the single tier pension in 2016, the full pension will be approx £155 (for 35 years) less a deduction for the contracted out years. The pension you receive will not be less than that under the old scheme.

Re: Pension from goverment

I think the full basic pension is only £115 up to 2016

Re: Pension from goverment

I know it is virtually impossible to live solely on a state pension. People get far more if on benefits such as housing- child - and what ever else they can claim for. Yet those who have paid in all their lives get a pittance when reaching that time in life when should be enjoying the rest of their lives without financial worry.
Only bonus is £200 for heating in the winter. I would love to see any politician heat their house all winter on £200, it is a joke

Re: Pension from goverment

You could be right Jimmy, but £115 or £118, it's not a lot to live on, but there are various benefits to be claimed.
I should be getting my state pension this year. It's only a fraction of my occupational pensions, but as Tesco says, "every little helps".