A contracted-out State Pension record means you paid less National Insurance, or had some paid into another pension, instead of building SERPS or S2P.
If you worked before April 2016, there is a good chance you were contracted out, and it can be the reason your State Pension forecast falls short of the full amount. Old letters full of COPE and GMP figures need translating, and the form on this page exists so that an FCA-authorised adviser who knows the jargon can ring you free.
What does contracted out mean for your State Pension?
Before 2016 you, or the workplace or private pension you belonged to, could choose to "contract out" of the Additional State Pension, according to GOV.UK. That was the earnings-linked layer sitting above the basic State Pension, and the Additional State Pension guide covers how SERPS and the State Second Pension built it up. This page is about what you gave up by stepping outside it.
The trade was simple on paper. GOV.UK says that if you were contracted out, some of your National Insurance contributions were either lower than other people's, or were paid into another pension such as a workplace or private one. In return, the scheme you belonged to took on the job of providing the extra pension. GOV.UK says a pension of that kind usually matches or beats the Additional State Pension you gave up.
| Contracted in | Contracted out | |
|---|---|---|
| National Insurance | Standard rate | Lower, or part paid to another pension |
| Additional State Pension | Built up in the State scheme | Little or none for those years |
| Basic State Pension | Built up as normal | Still built up as normal |
| Extra pension from | The State | Your workplace or private pension |
On GOV.UK's list, the lower National Insurance rate applied while you were contracted out if you earned within a set weekly band, were under State Pension age and did not pay reduced rate National Insurance.
It was common: GOV.UK says that, at some stage, most employees from before April 2016 were contracted out.
Which kinds of pension were contracted out?
Final salary and other defined benefit schemes are the usual answer. DWP says their members are likely to have been contracted out, and that any pension scheme at work before April 2012 is likely to have been too, along with some stakeholder and personal pension schemes. MoneyHelper adds that contracting out through some types of personal pension was possible until 2012. Which of your jobs counted depends on the employer and the years, so a scheme name is not enough to tell you; the payslip check below is the quickest test.
Why does my State Pension forecast look lower if I was contracted out?
Because an amount is taken off. For someone contracted out before 6 April 2016 whose State Pension age falls on or after that date, GOV.UK warns the full rate of the new State Pension might not be reached; DWP's guide gives that rate as £241.30 a week (the 2026 to 2027 rate).
GOV.UK gives two reasons: you either paid National Insurance at a reduced rate, or part of what you paid went towards a workplace or private pension. How much is taken off depends on how long you were contracted out and on your earnings at the time. DWP's guide adds that the deduction was applied to both of the calculations used to set your "starting amount", the one under the old rules and the one under the new rules. The new State Pension compared with the old explains starting amounts in full.
The effect is different if your State Pension began before 6 April 2016. For the time you were contracted out, GOV.UK says, you might receive no Additional State Pension or only a little, while still receiving the basic State Pension. GOV.UK adds that if you are on a low income you can apply for Pension Credit.
Can you make up the gap?
You might be able to, by adding qualifying years. GOV.UK expects a contracted-out record to take more than 35 of them to reach the full new State Pension, usually, though the contracted-out years themselves are not gaps. DWP's guide values each year added after 5 April 2016 at about £6.89 a week, with the additions stopping at the full rate or at your State Pension age, if that comes sooner.
GOV.UK gives two examples. In the first, a person whose estimate was cut to £200 a week by contracting out had a £30 deduction that five more qualifying years would cancel. In the second, a person who stopped work could pay for seven years of voluntary National Insurance, which would raise the forecast but still not reach the full rate. One caution from GOV.UK: paying voluntary contributions will not always raise your pension, and being contracted out is one example. Check before paying; topping up with voluntary National Insurance goes through the choices.
As GOV.UK's own example shows, the deduction is already built into your estimated State Pension, while the pension owed in its place comes from the old scheme. An FCA-authorised adviser can read the forecast and the scheme statement side by side; to arrange it, post your details through the page's short form.
What is the contracted-out pension equivalent (COPE)?
COPE stands for Contracted Out Pension Equivalent, according to MoneyHelper. MoneyHelper explains the idea like this: "Being contracted out meant that while you were building entitlement towards your basic State Pension, what would have been your Additional State Pension entitlement was building up within your private pension."
What the scheme owes you depends on the kind of scheme. For a defined benefit pension, MoneyHelper says the scheme had to provide a minimum benefit known as a guaranteed minimum pension, in place of the additional pension you gave up. For some people the amount went into a defined contribution pension, and then what you finally get depends on investment performance, charges and the choices you make when you take it.
Guaranteed minimum pensions in one line
A GMP is the least a contracted-out defined benefit scheme must pay members for contracted-out service from 6 April 1978 to 5 April 1997, according to HMRC's guidance for scheme administrators. Pots built up from contracted-out payments into a money purchase plan were called protected rights; see what a protected rights pension was. For GMPs themselves, what a GMP is and how to find yours take it from there.
Where to ask about COPE
MoneyHelper says you can ask your pension provider for a forecast of your contracted-out pension benefits. If you cannot recall which years were contracted out, MoneyHelper adds that HMRC's National Insurance helpline can tell you. For tracing a scheme that has changed name, finding a lost SERPS pension sets out the search.
A COPE or GMP figure with no obvious effect on your retirement income is something an adviser will explain for nothing; fill in the form here.
When did contracting out end?
All contracting out stopped on 5 April 2016, GOV.UK says. From then, National Insurance contributions have been at the standard rate until State Pension age, and nobody can contract out. DWP's guide puts it plainly: from 6 April 2016, these contracting-out rules no longer exist.
The change came with the new State Pension, which replaced the basic and Additional State Pension and ended contracting out for defined benefit pension schemes, according to HMRC. HMRC adds that it no longer tracks contracted-out rights or sends schemes statements about them.
Ending contracting out did not cancel what you had already built up. On the State side, any Additional State Pension you did build up went into your starting amount, and where the old rules would have paid more, GOV.UK says the extra comes as a 'protected payment' paid on top of the full rate. For former contracted-out defined benefit schemes, HMRC's guidance says members' entitlements from contracted-out employment must be protected.
How do I check if I was contracted out?
Look at old payslips first. Any dated before 6 April 2016 with a category letter D, E, L, N or O on it show you were contracted out, GOV.UK says. GOV.UK says you can also ask your former employers or pension providers, and the Pension Tracing Service might find contact details for a provider you have lost touch with.
Then compare with the State's figure. The government's forecast service gives an estimate of your pension and shows your National Insurance record; getting a pension forecast walks through it, and the UK State Pension guide has the wider picture.
What else do people want to know about contracting out?
Does contracting out mean I lose my State Pension?
No. GOV.UK says you still get the basic State Pension if you were contracted out. What can be missing or reduced is the Additional State Pension, or, for the new State Pension, part of the starting amount.
Was my NHS, teachers' or police pension contracted out?
DWP says members of defined benefit schemes are likely to have been contracted out, but whether yours was depends on the scheme and the years involved. GOV.UK suggests asking the pension provider; for NHS members, working out which NHS scheme you are in is a useful first step.
Is contracting out the same as opting out of a workplace pension?
No. GOV.UK describes contracting out as a choice about the Additional State Pension, made before 2016 by you or your scheme. Opting out of a workplace pension today is a different decision, covered in opting out of a workplace pension.
Can I contract out now?
No. GOV.UK says you cannot contract out after 6 April 2016.
Do contracted-out years count as qualifying years?
Yes. GOV.UK says years where you were contracted out count as qualifying years and are not gaps in your National Insurance record.
Bringing the State and scheme sides together
The State Pension figure has the deduction taken off; your old scheme or provider holds the pension built up in its place. Once both documents are in front of you, an adviser at the firm behind this page's short form can total them up on one free call.
Sources, read 29 October 2026 unless dated: GOV.UK guides on contracting out, the Additional State Pension, the new State Pension, voluntary National Insurance and the State Pension forecast service; the DWP guide to the new State Pension (updated 6 April 2026); HMRC guidance for pension scheme administrators on the end of contracting out (published 6 April 2016); and a MoneyHelper article on COPE (last updated 14 March 2025; archived copy captured 7 August 2025).