Payable Uprated Contracted-out Deduction Increments Definition

Case studies

"I would say that the amount of time I take to draft a good, comprehensive submission has been cut down by at least 60 to 70%. Having all these sources, commentary and journals at my fingertips is brilliant."

ParrisWhittaker

Access all documents on Payable Uprated Contracted-out Deduction Increments

GET ACCESS NOW

GLOSSARY

Published by a ��˾��ҹ�� Pensions expert

What does Payable Uprated Contracted-out Deduction Increments mean?

A PUCODI is the annual increase which is paid with an individual's state pension where the individual has deferred receipt of their guaranteed minimum pension and earned increments. New awards of PUCODIs were abolished by the Pensions Act 2011 as from April 2012. Where individuals contracted out of the additional state pension between 1978 and 1997 and delayed taking their contracted-out benefits, they earned increments on those benefits. The benefits are payable by the pension scheme but since the increments are not fully indexed by that pension scheme, the government added small amounts to the scheme member's underlying state additional pension.

The original policy intention was to ensure parity between those who were contracted out and those who were not. However, past policy changes to the state pension and contracted benefits eroded the policy intention. The Pensions Act 2011 removed the provision from the state for new awards of small top-up amounts to a person's state pension from April 2012 where that person is a member of a defined

Speed up all aspects of your legal work with tools that help you to work faster and smarter. Win cases, close deals and grow your business–all whilst saving time and reducing risk.