Serps

Vejovis

I have just found a site that says people could be entitled to refunds after being mis-informed about contracting out of SERPS.

I've never heard about this before. Does anyone know anything about it?

TIA

coyrls

What do you think you've "lost" by contracting out of SERPS?

Unless you were given professional advice to contract out, you have nobody to claim against. If you were given professional advice then take the matter up with your advisor, you don't need a Website to help you.

The Website will want payment, you will get nothing.

Vejovis

coyrls wrote: »

What do you think you've "lost" by contracting out of SERPS?

Unless you were given professional advice to contract out, you have nobody to claim against. If you were given professional advice then take the matter up with your advisor, you don't need a Website to help you.

The Website will want payment, you will get nothing.

I don't know if I've lost anything. I contracted out when I first took out a pension aged 17/18 ( a couple of decades ago now). I don't remember there ever being a discussion, just that contracting out was the thing to do.

dunstonh

I have just found a site that says people could be entitled to refunds after being mis-informed about contracting out of SERPS.

Contracting out of SERPS was an area that the claims companies thought they could make money out of. However, the FSA carried out a review and found a failure rate of 1.5%. It published a flow chart that effectively said that if you were under the age of 40 and it was before 1997 then it was ok. Indeed, the SIB did a review in 1996 and found that everyone that had contracted out to that point was better off.

Following the review, virtually all the CMCs pulled out of SERPS complaints. A handful still exist. However, typically they are either using the complaint to obtain your pension information to try and sell you a pension transfer (and earn on that) or they look for an up front fee knowing there is little chance of success and its the up front fee they make their money on.

I don't know if I've lost anything. I contracted out when I first took out a pension aged 17/18 ( a couple of decades ago now). I don't remember there ever being a discussion, just that contracting out was the thing to do.

So, well under the age of 40 then.

Vejovis

dunstonh wrote: »

Contracting out of SERPS was an area that the claims companies thought they could make money out of. However, the FSA carried out a review and found a failure rate of 1.5%. It published a flow chart that effectively said that if you were under the age of 40 and it was before 1997 then it was ok. Indeed, the SIB did a review in 1996 and found that everyone that had contracted out to that point was better off.

Following the review, virtually all the CMCs pulled out of SERPS complaints. A handful still exist. However, typically they are either using the complaint to obtain your pension information to try and sell you a pension transfer (and earn on that) or they look for an up front fee knowing there is little chance of success and its the up front fee they make their money on.


So, well under the age of 40 then.

Thank you

Yes just slightly under 40

I was jut curious, because I'd never heard anything bad about contracting out of SERPS.

My run of good luck continues, I've never gone for PPI, never had a dodgy bank account and now don't have a pension problem

jamesd

You can relax. You're a winner from contracting out. You'll get whatever you got from contracting out and also get the full flat rate capped income level. All that happens is that you need to work a little longer to get to the cap level than someone who didn't contract out. All they get is that cap level, you get that plus whatever you have outside the state system.

dunstonh

I was jut curious, because I'd never heard anything bad about contracting out of SERPS.

After the FSA found a failure rate of 1.5%, it was something the claims companies mostly moved away from.

Some claims companies are little more than complaint generators using a scattergun approach. They will send the firm a template letter listing a whole load of made up reasons hoping something will stick. They will do that with any financial product. Investments, ISAs, annuities, pensions. you name it, you can probably find a claims company willing to generate a false complaint.

pedrothewheel

I wonder if anyone can help me with this, I too contracted into Serps at a early age although I really didn't quite know what I was doing, I was then automatically contracted out about 10 years ago.
I panicked a bit last year and I was advised to contact the National Insurance Office to find out if there was anyway of repaying the shortfall to be entitled to a full pension, their answer was that i needed 30 years and that I had 29 qualifying years up until April 2014 so I'm guessing now its 30, But i don't know how I have...
It also said the pension is changing in 2016 and that you only need 10 qualifying years, so am I right in thinking that I will get a full pension?
I done the same thing for my husband who didn't contract out, but has a shortfall off 2 years but I'm assuming this year and next year makes up the shortfall therefore we shouldn't pay anything..
Anyone able to help me understand? Thanks in advance.

dunstonh

I panicked a bit last year and I was advised to contact the National Insurance Office to find out if there was anyway of repaying the shortfall to be entitled to a full pension, their answer was that i needed 30 years and that I had 29 qualifying years up until April 2014 so I'm guessing now its 30, But i don't know how I have...

Contracting out of serps didnt affect your pension qualifying years.

t also said the pension is changing in 2016 and that you only need 10 qualifying years, so am I right in thinking that I will get a full pension?

It used to be 40 years. Then it dropped to 30 years and now it is increasing to 35 years.

greenglide

You cannot contract out of the basic pension so the figure of 29 qualifying years will be correct.

You were contracted out of the additional pension scheme (SERPS, later S2P ). With the advent of the new State Pension scheme from next year the SERPS / S2P scheme comes to an end.

If you have 30 qualifying years by then you will start the new system with, at least, the full basic pension under the current scheme. Any additional qualifying years after that will enable you to build up to the maximum amount under the new system.

pedrothewheel

That's great thanks! Looks like I'm ok!
Just read my husbands letter again and it says he has 22 qualifying years and a shortfall in 2 years, this was at April 2014, am I right in thinking if he pays the shortfall he will have the 22, plus the 2 shortfall years and 2 for 14-15, 15-16 equalling 26 to transfer in to the new scheme therefore needing to work another 9 nine years to get full pension at 35 years, and if he doesn't pay the shortfall he will need to work another 11 years?