Contracting out of SERPS - some queries

Maisie_Miss

Hi there,

I found this thread when I was searching for advice about contracting out of SERPS - I did this back in 1989, along with many other people, with Norwich Union as they were then. Over the years, I have received letters and statements annually, showing contributions being received. I haven't actually made any contributions myself. In fact, it's still in my maiden name and sent to my parents address where I was living at the time I contracted out.

I have some queries:

1) When the pension changes come in to play, will I be able to draw down on the amount once I turn 55 (I'm currently 50)?

2) If I'm not able to draw down on it, can I transfer it to the pension scheme that I'm currently with and regularly contribute to (along with my employer)?

3) If I'm not sure where to write to, to make them aware of my name and address changes, is there a central Aviva address I should write to? Or a number to call?

Thank you in advance, I appreciate any help offered.

Regards

M_M

saver861

Maisie_Miss wrote: »

Hi there,

I found this thread when I was searching for advice about

I have some queries:

1) When the pension changes come in to play, will I be able to draw down on the amount once I turn 55 (I'm currently 50)?

Probably - but 5 years is a lonnnnnnng time in politics and pensions so don't hold your breath that it will all be the same then.

Maisie_Miss wrote: »

2) If I'm not able to draw down on it, can I transfer it to the pension scheme that I'm currently with and regularly contribute to (along with my employer)?

It would depend on who you are currently with and whether it would be economical if there were charges etc.

Maisie_Miss wrote: »

3) If I'm not sure where to write to, to make them aware of my name and address changes, is there a central Aviva address I should write to? Or a number to call?

Have you thought about looking on the Aviva website??? That might be a good place to start....

xylophone

http://www.aviva.co.uk/contact-us/ - to change your details.

You would need to ask your existing pension provider if they would accept a transfer in.

Maisie_Miss

Thank you Xylophone - I did have a look at the Aviva website but it's split up into all sorts of areas so I wanted to make sure I got the right details. I'll give them a call and start it from there.

I'm currently with Standard Life, through my work - one of those pensions where I contribute so much a month and my employer tops it up. As far as I could see when I was Googling about the new pension stuff, the early "draw down / reinvest" options (which may or may not be around in 5 years time - I agree with you on that score!) the new options don't apply if you have a pension that you don't actively contribute to. Hence, I'd rather transfer in my Aviva pension to the Standard Life one if they let me, so I don't miss out on the amount which has accrued since 1989.

Oh well, first thing tomorrow I shall give Aviva a call and take it from there...!

Thanks again,

M_M

jem16

Maisie_Miss wrote: »

As far as I could see when I was Googling about the new pension stuff, the early "draw down / reinvest" options (which may or may not be around in 5 years time - I agree with you on that score!) the new options don't apply if you have a pension that you don't actively contribute to.

That's not correct.

The new rules apply to any Defined Contribution pension whether it's one you currently pay into or not. What matters more is whether or not the pension provider wishes to provide that option as they don't have to. If that was the case then transfer it.

ian31070

hi I contracted out of serps in 1992 and have just found my pension pot after 20 years its with friends life in a personel pot and worth 31000 with a transfer out value of 42000 iam a bit of a moron with pensions was wondering if I should transfer it in to my public sector works pension or leave it were it is they've said its a with profits pension HELP

jem16

ian31070 wrote: »

was wondering if I should transfer it in to my public sector works pension

If you joined the LGPS more than 12 months ago you will not be able to transfer. Sometimes the employer will permit it but it's unusual.

kidmugsy

Maisie_Miss wrote: »

I'm currently with Standard Life, through my work - one of those pensions where I contribute so much a month and my employer tops it up. ... Hence, I'd rather transfer in my Aviva pension to the Standard Life one if they let me

If there's a good chance that at 55 you'll still be with your employer and contributing to that SL pension; and if there's a good chance that you'll want to withdraw some money from the Aviva one, then I suggest that you don't transfer it to SL. There are plenty of providers of Personal Pensions, SIPPs, and Stakeholders you could transfer to instead.

hyperhypo

I've a variant on Maisie_Miss's OP and hope won't mind me joining in here.

I too have an old serps former prot rights PP with Aviva ...late of Norwich Union.

No contributions have been made to the plan since 2000 as have been in other employer DB and latterly DC schemes since then.

So from inputs of c. 8 - 9 £k from 1989 - 2000, i now have a transferrable fund of c. £29k, majority of which is in Aviva's with-profits fund with a guarantee of 4% ...that's the only guarantee associated with the PP , no GAR or other feature that i can discern.

I've wondered what to do with it ..i'm 55 now working for another 5-6 years ..i might transfer it into a SIPP or a transfer in to my group stakeholder DC work scheme ... or leave it where it is.

I have been tempted to move it before into a SIPthe P...almost as an experiment to find out if i could use the £29 k to my benefit over the next 5 years or so before it would be combined with my present DC pot to form a flexi drawdown fund until my db pension starts at 63.

I'm still tempted but i've no wit to assess how valuable or otherwise the existing Aviva PP is ...and my hands off so far has been informed by fact that nothing has been added since 2000 and it's managed to reach £29k ...without my interference.

Or perhaps Aviva allow internal transfer to something a little more
adventurous ?


i would like to know if others here have been similarly tempted with their former Protected Rights PP pots.

agarnett

ian31070 wrote: »

hi I contracted out of serps in 1992 and have just found my pension pot after 20 years its with friends life in a personel pot and worth 31000 with a transfer out value of 42000 iam a bit of a moron with pensions was wondering if I should transfer it in to my public sector works pension or leave it were it is they've said its a with profits pension HELP

Be careful. If it is a with-profits policy you need to be careful you don't inadvertently miss out on a 5 year revaluation following Friends Life's bribery exercise in 2001. They have variously used the words "reorganisation" and "reattribution" for what they did, but if your policy was affected, then you will have received a hell of a lot of close typed paper in 2000/2001.

If you did not accept the bribe in 2001 which in your case would likely have been less than £400, or simply didn't respond, you may be in the lucky position of being in the Old With-Profits Fund.

My Friends Life WP SERPS policy started life as an Equity and Law policy just a little earlier than yours. It is currently worth just a little more than yours.

In 2006 or 2007 I received a small £750 bonus that I would not have received had I accepted a £4,000 bribe in 2001. In 2011 I received £4,500 that I would not have received had I taken the £400 bribe in 2001.

I would not be surprised if I get another £4,500 bonus next year (if I don't transfer).

Friends Life has just become part of Aviva (two days ago).

In February, Aviva started writing to their With-Profits poilicyholders who they also tried to bribe in 2007-2009. They have also been scheming on how they should pay the contrarians like me the cream n the top of the fund which they wish to turn into cash for their shareholders.

These bribes were about getting unsuspecting policyholders to give up the cream in the funds.

My policy with Aviva is worth about the same as my FL SERPS policy.

They have just announced that if I transfer my policy, there will be an extra 9% added. Basically they want the cream for themselves and Aviva, unlike FL, although they are all the same company as of two days ago, have failed to add the reluctant bonus to our policies - we can only get it if we transfer out. And they have even dared to make it into a non-guaranteed bonus.

They are behaving like crooks.

But you should not cash in your WP SERPS policy until you establish whether you took the bribe in 2001 and are in the "New With Profits Fund" or did not take the bribe and are in the "Old With Profits Fund".

You need to get it confirmed in writing because they have deliberately changed the name of the fund several times and the words Old With Profits are no longer in the name at FL.

Check http://customers.friendslife.co.uk/contact-us/ to find the telephone number to contact to start your enquiry.

Don't expect the call centre staff to know what you are talking about if you mention the bribe. They generally haven't a clue what went on in 2001.

But ask about what bonuses have attached, particularly "reorganisation bonuses" in 2006/7 and 2011/12.

hyperhypo

That's prompted me to look at history of my NU wp fund too...