Can anyone help please

Chrissiew

My husband recieved a letter today from HM revenue and customs, it says acknowledge of a request to cancel your contracting out arrangement with your personal pension provider.

It goes on to say they make NI rebate payments to the provider for his personal pension and a request to cancel can be made by yourself or your pension provider.

They have received a request to cancel from prudential personal pension scheme.

It says he's been a member since 1991, he has no idea about this at all and didn't know he had a pension scheme, does this mean when he retires he gets a private pension or does it mean he has some money to come now?

jem16

Chrissiew wrote: »

My husband recieved a letter today from HM revenue and customs, it says acknowledge of a request to cancel your contracting out arrangement with your personal pension provider.

It goes on to say they make NI rebate payments to the provider for his personal pension and a request to cancel can be made by yourself or your pension provider.

They have received a request to cancel from prudential personal pension scheme.

Contracting out was abolished for all defined contribution schemes as of April 2012 so that makes sense.

It says he's been a member since 1991, he has no idea about this at all and didn't know he had a pension scheme, does this mean when he retires he gets a private pension or does it mean he has some money to come now?

He must have known about it at some point as he took the decision to contract out.

However basically it is a pension which he can access at age 55. However might be a good idea to find out something about it now such as its value.

xylophone

http://www.pensionsadvisoryservice.org.uk/personal-and-stakeholder-pensions/personal-pension-plans/contracting-out-of-serpss2p - does this ring a bell with him?

mgdavid

Chrissiew wrote: »

............It says he's been a member since 1991, he has no idea about this at all and didn't know he had a pension scheme, ...........

in the vast majority of cases a company pension is paid into by both employee and employer so it should show on his payslips, can you check one for him?
Of course he may be one of the lucky few who still have a non-contributory scheme in which case he needs to look on the company website/intranet or in the employee handbook - or just ask personnel.

Chrissiew

Thanks for the replies, I guess he must have known something about it at the time but as it's 21 years ago it must have slipped his mind, since then he's changed jobs several times so I doubt it carried on and he's been with his present employer for 12 years now and he's definitely not paying anything towards a pension with them.

I do remember about 7-8 years ago he got a refund for an old pension for £1,600 so maybe that was from the job he left were he was in a pension scheme and he hasn't got anything else to come now and the letter was maybe a standard letter they send to everyone who was in the scheme just because it's finished now

jem16

Chrissiew wrote: »

I do remember about 7-8 years ago he got a refund for an old pension for £1,600 so maybe that was from the job he left were he was in a pension scheme and he hasn't got anything else to come now and the letter was maybe a standard letter they send to everyone who was in the scheme just because it's finished now

That would be nothing to do with this I doubt. If he got a refund it would have been closed.

I suggest you try to find out.

What is your husband doing for retirement? He doesn't seem to be paying into a pension with his current employer - is there a scheme? Plus he seems to have taken a refund from a previous scheme.

xylophone

Your husband needs to check with the Prudential.
Have you read the link I posted about contracting out of SERPS?
It is important that your husband looks into what has happened because of the effect on Additional State Pension.

Has he ever requested a State Pension Forecast/Statement?http://www.direct.gov.uk/en/Pensionsandretirementplanning/StatePension/StatePensionforecast/DG_10014008

iwilldoitthistime

This letter from HMRC is telling your husband that he has a Personal Pension with Prudential and they have submitted a form to close the pension on HMRC records. Contributions would not show on his payslips as he would be paying full rate NI - but HMRC would be paying rebates into the Personal Pension with Prudential based on his earnings.

As far as I know, Prudential do a bulk mailing to customers each year if they feel they would benefit from closing the pension due to age. Has your husband changed address since 1991? If so, Prudential may not have up to date records of his address to send this mailing, and would therefore assume he was happy to close the PP. HMRC however have more up to date information (from EYRs etc) which may be why he has received this letter.

Contact Prudential and ask for more information.