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Compulsary Opt-In to SERPS

Had a letter from Scottish Widows saying that from 6 April 2012 I will be forced to opt back into the SERPS. I opted out a good few years ago and when the advise "changed" DID NOT opt back in as I was of the opinion that by the time I come to retire SERPS probably wouldnt exist.

What I was wondering is:-
a) will any benefits I accrued under my opt-out pension still be paid from Scottish Widows or is it as though it never happened, and

b) how does this forcing people to opt back into SERPs sit alongside the announcement in the last budget about the aim for a fixed flat single rate pension ?

Comments

  • Sceptre
    Sceptre Posts: 110 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    edited 11 April 2012 at 9:29AM
    Thanks for this xylophone.

    I'm still confused by the last paragraph, as in my own case, my provider is merging my two 'pots' into my stakeholder. I'm still not sure whether that is the best thing to do.
  • dunstonh
    dunstonh Posts: 121,226 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    b) how does this forcing people to opt back into SERPs sit alongside the announcement in the last budget about the aim for a fixed flat single rate pension ?

    SERPS was abolished years ago and replaced with S2P. The various additional state pensions over the years are generally put together as "additional" state pensions. The proposed single state pension doesnt have an "additional" element. Which is the point.
    s in my own case, my provider is merging my two 'pots' into my stakeholder. I'm still not sure whether that is the best thing to do.

    Providers are doing this differently depending on their software. Protected rights are being reclassified as non-protected rights. However, some providers cannot merge the two into one pot at this time. So, they are keeping them as two pots of non-protected rights until they can merge them. Others can merge and will merge. It really makes no difference at all. Its just a short term admin thing.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Sceptre
    Sceptre Posts: 110 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    dunstonh wrote: »
    Providers are doing this differently depending on their software. Protected rights are being reclassified as non-protected rights. However, some providers cannot merge the two into one pot at this time. So, they are keeping them as two pots of non-protected rights until they can merge them. Others can merge and will merge. It really makes no difference at all. Its just a short term admin thing.

    Oh, ok. That's reassuring.
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