1980's Mis-sold Opt out of Serps

Lorian

I opted out of SERPS back about then too, as I was under 25 at the time and was not able to join the company scheme until 25. So as I recall several years of SERPS payments and some "backdated bonus" was paid into an account.

About a year ago the company was taken over, and the "SERPS only" account was transferred into my own name with one of large financial institutes.

It seems to be invested in a fixed-rate account, earning (IIRC) 5.75% interest PA.

What are my options with this money, I believe it can only be moved to scheme that deals with this type of SERPS-Only money?

EdInvestor

Where is it exactly?

You should move it into the same kind of funds your normal pension is in, unless you are on the verge of retirement and plan to buy an annuity.

dunstonh

It was in the financial press this week that Brunel Franklin (one of the biggest claims companies) is no turning down claims against IFAs as it is unprofitable. (in other words the ratio of success is too low).

They also announced that they have abandoned taking on SERPS claims. Partly again to difficulties in getting successful claims and also because there is no redress payment but compensation is paid out as an extra monthly pension meaning they cannot profit from it easily.

So, when a company approaches you saying that they want up front money to take on your complaint, you should consider the position taken by the big complaints companies in this respect.

liney

My husband has vague recollections of a Financial Adviser telling him it was best to 'Opt out'. How would he go about finding out if he actually did Opt out, as he never keeps paperwork and is quite honestly useless at anything financial.

The_Economist

Lorian wrote: »

I opted out of SERPS back about then too, as I was under 25 at the time and was not able to join the company scheme until 25. So as I recall several years of SERPS payments and some "backdated bonus" was paid into an account.

About a year ago the company was taken over, and the "SERPS only" account was transferred into my own name with one of large financial institutes.

It seems to be invested in a fixed-rate account, earning (IIRC) 5.75% interest PA.

What are my options with this money, I believe it can only be moved to scheme that deals with this type of SERPS-Only money?

I opted out years ago to. Not so sure it was a good idea now. When i started work at sixteen i spent 7 years there and they had a company pension. But unwittingly i did'nt join it and ended up joining a private pension scheme, at the same time i opted out.
Well in the end the company folded, and a few years later i was contacted about miss-selling of pensions and won my case. But nothing was said about opting out.
Well a few years down the line after a few jobs i joined my present employers pension scheme. Then the scheme opted out. So the money that was being paid to the private pension fund stopped, hence freezeing it. And now all rebates goto present employee scheme.
You want to know what options you have, well in my experience theres not a lot if any!!. I have tried loads of diffrent ways to try and sort it out, so its not just sitting there getting eatern away by admin fees but had no luck. It does pose the question if these too need to be looked into for miss-selling or for people being wrongly advised.

ManAtHome

Where are they getting names and addresses from (assuming they aren't just cold-calling everyone of working age)?

dunstonh

Some claims companies recruit ex financial advisers who have client lists. Ironically, it means that some of the people are arranging complaints against their own advice.

You want to know what options you have, well in my experience theres not a lot if any!!.

There are usually lots of options.

I have tried loads of diffrent ways to try and sort it out, so its not just sitting there getting eatern away by admin fees but had no luck.

If you arent able to sort it out then get a professional to do it for you. There is no reason to leave it there in a fund that isnt covering the charges.

EdInvestor

The_Economist wrote: »

So the money that was being paid to the private pension fund stopped, hence freezeing it. And now all rebates goto present employee scheme. You want to know what options you have, well in my experience theres not a lot if any!!. I have tried loads of diffrent ways to try and sort it out, so its not just sitting there getting eatern away by admin fees but had no luck. It does pose the question if these too need to be looked into for miss-selling or for people being wrongly advised.

Just transfer it (first checking if it has any valuable guarantees attached, whichmean you should leave it where it is). It's perfectly easy: just find another pension plan (eg Scottish Widows, Standard Life currently have personal pensions with good external fund choice and low charges).

Then contact a discount IFA such as https://www.cavendishonline.co.uk which will rebate the charges and handle the admin.

Then when the money arrives at the new company, choose which funds you want to put the money in. That's it.

defender_of_the_weak

With regard to claims companies, brunel franklin have always cherry picked the easy win cases such as post 88 big company sales. They work on the numbers rather than the advice, and dont seem to have the in depth knowledge to challenge some of the sales and supporting rationale.

Of all the IFA cases we take on we win 70% across the board including pension sales.

In fairness to the IFAs on this board I should also point out that IFA complaints represent less than 15% of our total complaint volume

The_Economist

EdInvestor wrote: »

Just transfer it (first checking if it has any valuable guarantees attached, whichmean you should leave it where it is). It's perfectly easy: just find another pension plan (eg Scottish Widows, Standard Life currently have personal pensions with good external fund choice and low charges).

Then contact a discount IFA such as https://www.cavendishonline.co.uk which will rebate the charges and handle the admin.

Then when the money arrives at the new company, choose which funds you want to put the money in. That's it.

So far i have tried to put what ever the transfer value is into my company pension, they will not touch it, tried to put into my wifes stakeholder pension no go there ethier. I was going to start a stake holder pension and put in to mine but they say they cannot do it or offer me a stake holder pension. Its something to do with the advice they give me they could be liable. I will have to check to see if it has any valuable guarantees not sure on that one....