Opt out of SERPS/S2P?

dunstonh

Greetings! I hope you don't mind me saying that I have been following your advice with interest and wonder if I might ask you for your advice on a couple of issues please?

There is no advice given here on regulated issues. Just comment and discussion. You get no consumer protection if you act on comments on this board.

1. I believe I am currently opted out of SERPS. I am 56 years of age and a teacher but not a member of the teachers' pension scheme. I left teaching for a few years and was self-employed but now back at an independent school and paying NI contributions.

If you were in the teachers pension you would be contracted out. You cant be contracted out if you are self employed (as you dont qualify for the state second pension). If you are employed and contracted out into a personal pension then you would be contracted out. although at age 56, its pretty much pointless being contracted out as its costing you more than you would gain.

he question is this: I am already taking a drawdown from the non-protected rights element but if I opt to take the tax free lump sum and drawdown from the protected rights element now (I have plans for the few thousand it will generate) will I still be able to do so if I opt back into serps immediately?

yes

Does the state have any claim on my protected rights money with Sippdeals if I opt back into serps?

no.

2. Although I have been paying NI contributions for the past 3 years since re-entering teaching I understand that Sippdeal cannot accept NI rebates so I wonder where that money will have gone and wonder if I might be able to claim it back.

Did you contract out there them? I doubt it as you couldnt contract out with SIPPs until recently. Chances are you were not contracted out.

Perhaps I can open a new stakeholder pension scheme to accept them.

Have you actually checked to see if you are contracted out or have you just assumed that you are? Its an annual thing so you cant contract out on past years.

But, perhaps it would be better to go back into SERPS?

Yes. 11 years ago would be the right time.

Any advice would be most gratefully received. Please feel from to email me.

Not how posting to a board works. You post your comment (as you have) and you get responses like this. You dont get emails. Others reading may have similar questions and if the responses were private, they wouldnt be able to see the answers. And again, this is not advice. Just discussion.

seancass

Thank you very much dunstonh for taking the trouble to reply. I am sure there are many on here who appreciate the time and effort you dispense.

Best,
Sean

jamesd

Moniker, the LGPS is probably contracted out, you pensions people can tell you. Contracted out work schemes mean that the employee is also contracted out. Best to call the helpline about the registration for the state pension forecast.

cinders123

Contracting in/out

When you have a pension with your work these contributions that you/your employer make are NPR non protected rights.

The contracted out (SERPS) are PRP protected rights of the fund.

If you are in a scheme paying in then you should contact the servicing IFA of the scheme for advice eg on what your funds are invested in etc..

If you were in a scheme and you have now moved employer you could move that pot over if the new provider would be willing to; or you can leave it paid up with the company you started with; maybe worth asking for a Statement of Benfits from inception and the charges you have on your plan as it may be worth moving it to Individual pension plan and leave it there paid up.
With regards to SERPS From 6 April 2012 you will no longer be able to contract out of the additional State Pension, also known as the State Second Pension.
:):):)

cinders123

Shaunyg wrote: »

If anyone can help it will be appreciated. I opted out of SERPS in the late eighties, and now have no idea whats happened to it. Can't remember the name of the pensions company, but I don't think they exist anymore. Moved house a few times since, and can't find any paperwork. Any advice ?
Thanks

Contact HMRC they will be able to tell you which provider they are sending your rebate money to.

s-a-h-

Any views on a 45 yr old male with a frozen personal pension and paying into a company pension but still opted out. I opted out about 23 yrs ago when I started the personal pension. I started the company pension 5 yrs ago. Would it be better to opt back in?
Also, can I restart the frozen pension and pay into it as well as the company one? Would it be worth it?

dunstonh

Would it be better to opt back in?

Are you still contracted out using the personal pension or has the occupational pension taken priority?

Also, can I restart the frozen pension and pay into it as well as the company one?

Its not frozen. Its paid up. Some you can restart some you cant. Some you can and its not worth it as modern alternatives are better. Other older ones are better than modern alternatives.

Would it be worth it?

That would require us to know about your pension and your personal circumstances. Certainly, providing more for your retirement means you will be better off in retirement and thats a good thing. However, the best way of doing it is not something we can really help you with.

s-a-h-

Sorry, slight error in the above, I am now contracted back in with the occupational pension and have been for 5 yrs, so my question is do I contract out again?
Many thanks for earlier answers.

dunstonh

s-a-h- wrote: »

Sorry, slight error in the above, I am now contracted back in with the occupational pension and have been for 5 yrs, so my question is do I contract out again?
Many thanks for earlier answers.

With it being abolished in 2012 and you being at the age you should contract in then its probably sensible to stay in.

s-a-h-

Thank you for taking the time to answer.