SERPS Opt Out Abbey Life

Costello123

Hoping you can help me - my husband opted out of SERPS in around about 1982 (I think) with Abbey Life. He has always gotten regular statements from them but he thinks that this account has been frozen since he left that job in 1992 - he has no other private or works pension schemes on the go although he has always and still does work full time and has had two long term jobs since then.

He has received a letter regarding opting back in from Abbey but to be honest we are not at all sure what this means or whether it would be worth him transferring whatever is in his fund into his current work pension plan and begin paying into it now. He is now almost 52.....

Any help much appreciated.....:eek:

dunstonh

my husband opted out of SERPS in around about 1982 (I think) with Abbey Life.

Contracting out applications started during 1987 at the earliest for personal pensions.

he thinks that this account has been frozen since he left that job in 1992

personal pensions cannot be frozen. It may be paid up but it is still subject to investment returns and not frozen.

He has received a letter regarding opting back in from Abbey but to be honest we are not at all sure what this means

Probably to let him no contracting out was being abolished in April and protected rights being reclassified as non protected rights.

whether it would be worth him transferring whatever is in his fund into his current work pension plan and begin paying into it now.

That would require an analysis of his existing pensions and the proposed pensions to see which is best for him. We cant say. My experience of Abbey Life plans is that some can be worth transferred whilst others are not. You cant apply one rule to all. It may be worth getting a local IFA to review the pension if you are unable to do it yourself.

Costello123

Thank you for this I think you are right about having to analyse his existing pension. I have assumed this is a personal pension plan although in truth he has not paid anything into it since he left the company he was working for at the time and says that even before that he wasn't paying contributions in and that it was only his opt out contributions that went into it - not sure what that makes it to be honest - if this is the case is it in fact worth anything at all if he hasn't put anything into it for 20 years? And if it is not a personal pension as such will there be anything to transfer?

Costello123

OK had a look at his paperwork it appears he is still opted out and that Abbey have recommended he opt back in - he is 52 years old - is it worth it as the age of 52 when he could claim this at age 55 and put the money into an ISA or something? Help please most confused.....

dunstonh

OK had a look at his paperwork it appears he is still opted out and that Abbey have recommended he opt back in

No-one is contracted out any more. It was abolished earlier this year.

Costello123

So has he been automatically opted back in then or is his money just sitting with Abbey and we need to sort it out from there? I wish he would sort this himself but it won't happen if I don't do it.

xylophone

What is the transfer value of the Abbey pension?

Costello123

Not sure to be honest my understanding from him is that it was only the SERPS that ever went into it - he did not pay anything else or additional to that - so say he had this from 1987 when the option opened and he has not been out of work since then - approx 25 years worth.

dunstonh

so say he had this from 1987 when the option opened and he has not been out of work since then - approx 25 years worth.

Did he have any other pension in that time? e.g. an occupational pension? These usually trump APPPs that your husband have in the pecking order. So, whilst his would be sitting there waiting for rebates, the rebate would be redirected to the works scheme (or have a different way of utilising it for the benefits)