Combined Pension Forecast

Frequently asked questions

What if we are unable to produce a Combined Pension Forecast?

There will be instances where a State Pension forecast cannot be provided. This can be for a variety of reasons, including a mismatch of data (date of birth, National Insurance number, etc) between our records and those of the employer/provider or because the individual is already over State Pension age. These are the most common reasons for failing to provide a State Pension forecast but there are others.

All such cases will be returned to the employer/provider with a rejection code. Further details on rejection codes can be found in the CPF 3 Technical guide (page 26).

Any individual who receives a rejection should be encouraged to contact the Retirement Pension Forecast Team on 0845 3000 168 who will explain the reason for the rejection, rectify any errors in the information held (where applicable) and offer an Individual Pension Forecast. Where details have been updated a Combined Pension Forecast will be available for future requests.

For further information on rejected State Pension forecast requests, the procedures to follow and letters to send to individuals in such instances, please see rejections and queries

What if employees have questions?

Employees seeking further help with their State Pension forecast, or a full and more personalised State Pension forecast, can contact the Future Pension Centre (FPC) on 0845 3000 168. This number can also be found on the State Pension element of their Combined Pension Forecast.

Employers can request copies of the leaflet 'Your pension statement', which answers many of the common questions about the State Pension forecast.

How up to date is the State Pension forecast information?

This depends on when the End of Year returns are submitted by Employers and credited to the National Insurance Recording system (NIRS). For example, if forecast information is requested between April and September 2006 the information is likely to be based on the 2004/05 contribution record.

From October 2006 onwards it is likely that employee contributions will have been credited to NIRS and therefore the forecast information will be based on the 2005/06 contribution record.

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Does the State Pension forecast take account of inflation?

All amounts are shown in today’s prices and they go up every year in line with the Retail Price Index (RPI).

Are any assumptions used to calculate the projected figures?

The projected figures are based on today’s rates and the only assumption is that the customer continues working and paying NI contributions.

For more information see our State Pension guide

Will the statement inform members when they should contract back in to
the State Earnings Related Pension Scheme (SERPS)?

No. Members should seek independent financial advice if they are unsure about any actions to take following receipt of the forecast.

Does the State Pension forecast assume an individual will pay (or be credited with) full rate National Insurance contributions up to State Pension age?

The “Future State Pension” amounts are based on the assumption that you will pay, be treated as having paid or be credited with full-rate National Insurance contributions from the date of the forecast until you reach State Pension age.

If you are a married woman who has chosen to pay the reduced-rate of National Insurance – sometimes called “the small stamp” - your “Future State Pension” amounts are based on the assumption that you will continue to pay reduced-rate contributions.

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Can an employer obtain the data required for Combined Pension Forecasts from an external accountant who holds the payroll information?

Yes, as long as the accountant plays no other part in the Combined Pension Forecast (CPF) process, e.g. it would be for the employer to keep a record of the employees who opt-out.

Is the information leaflet CPF5 available online?

Yes. A PDF version is available

Can the employer/provider contact the Combined Pension Forecast recipients after they receive a statement to discuss making future provision or increasing their contributions?

Once the member has their forecast we do not see a problem with you conducting marketing or follow-up.

Are Combined Pension Forecasts only for scheme members?

No. You can issue Combined Pension Forecasts to non-scheme members as long as you hold their details and obtain their consent. However, their occupation, stakeholder or other pension scheme statement will show a nil return.

Is the DWP system notified if a scheme member has received a Combined Pension Forecast from another pension provider?

No. However, there is a caveat on the State Pension forecast that tells people who receive more than one Combined Pension Forecast not to add the State Pension amounts together.

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Are Pension Providers liable if the incorrect State Pension information is issued in a Combined Pension Forecast?

As a Pension Provider you are not liable for any incorrect data issued in the State Pension information. Any individual that receives incorrect information will be expected to send their query to the Future Pension Centre which will investigate the contribution record and correspond direct with the individual.

The DWP are not liable for any incorrect information issued in the Private Pension information.

Please look at the caveats on the draft Forecast Statement attached to the draft Registration Agreement.

Do we need to issue new joiners with a consent letter as we already cover exchange of information with DWP at induction?

Yes. New members still need to be given 30 days to opt out and the consent letter covers all the legislative requirements. However, you may be able to amend the information given in your induction package to cover the above.
Contact the Combined Pension Forecasting team for more information

Why is the consent necessary?

Under Social Security (Disclosure of Information) Regulations 2000, all scheme members should be given the chance to say they do not want their State Pension information passed to providers for a Combined Pension Forecast.

Will people be able to make up any shortfall in contributions to increase their State Pension entitlement?

This depends on the years that are missing and if it is over 6 years or more. The individual would be advised to contact the Future Pension Centre.

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