opting out of serps?

dunstonh

We both have a couple of 'frozen' pensions offering around £400 a year , which I assume is better to cash in totally rather than wait for the huge payouts each year.

When you say frozen, do you really mean frozen or was that just your phrasing? (frozen has a specific meaning and applies do final salary schemes). Most people have pensions that cannot be frozen.

marrbett

dunstonh wrote: »

When you say frozen, do you really mean frozen or was that just your phrasing? (frozen has a specific meaning and applies do final salary schemes). Most people have pensions that cannot be frozen.

Oh sorry, No those are my words...they are just not being paid into anymore, one was my DHs pension with friends provident when he was self employed -when we asked our then FA if we could increase the payments into that pension he told us we couldn't and opened up another on to run alongside it. I'm not so sure that he wasn't just making money out of it, but Dh's got 2 little pensions with them now, which seems ridiculous to me!

dunstonh

marrbett wrote: »

Oh sorry, No those are my words...they are just not being paid into anymore, one was my DHs pension with friends provident when he was self employed -when we asked our then FA if we could increase the payments into that pension he told us we couldn't and opened up another on to run alongside it. I'm not so sure that he wasn't just making money out of it, but Dh's got 2 little pensions with them now, which seems ridiculous to me!

Prior to 2012, the pension providers used to issue a pension product and then some years later would issue another version and then another one. Typically, this reflected the continual reduction in charges that have occurred over the last 25 years. Some providers would close their previous version for new business and increments and would only allow top ups on the new version. Some providers would close them for new business but allow top ups. However, the IFA would have to benchmark whether it was better to use the old one or a new one. Since 2001 there has also been rule RU64 (well really since around 1999 as there was expectation to be ready in advance of it) which required bench-marking to stakeholder standards. This could lead to having original contributions on PPP and newer contributions on stakeholder. However, from around 2005, personal pensions fought back and went cheaper than stakeholder for many people.

Nowadays, new pensions offer contracts which are modular and can be adjusted and dont need versions to replace earlier ones. However, what you describe was quite normal and expected. Indeed, had the adviser topped up the older one, they would probably have earned more commission as the older ones tended to pay more than the newer ones.

marrbett

dunstonh wrote: »

Prior to 2012, the pension providers used to issue a pension product and then some years later would issue another version and then another one. Typically, this reflected the continual reduction in charges that have occurred over the last 25 years. Some providers would close their previous version for new business and increments and would only allow top ups on the new version. Some providers would close them for new business but allow top ups. However, the IFA would have to benchmark whether it was better to use the old one or a new one. Since 2001 there has also been rule RU64 (well really since around 1999 as there was expectation to be ready in advance of it) which required bench-marking to stakeholder standards. This could lead to having original contributions on PPP and newer contributions on stakeholder. However, from around 2005, personal pensions fought back and went cheaper than stakeholder for many people.

Nowadays, new pensions offer contracts which are modular and can be adjusted and dont need versions to replace earlier ones. However, what you describe was quite normal and expected. Indeed, had the adviser topped up the older one, they would probably have earned more commission as the older ones tended to pay more than the newer ones.

See and I've been thinking bad thoughts about him all this time!!!:rotfl: It would have been around 2001 I think. I think we ought to get hold of the nhs pension advisors (for a clear picture) and then get some advice from an ifa about the best way ahead.
Many thanks

marrbett

Me again !!

So, we've arranged to see an NHS pension advisor person on Thursday.
Baring in mind, we've had no info about his pension for the last 14 or so years he's worked there (which seems odd to me) other than an amount on his wage slip about it being paid, any advice as to what we should be checking/asking about??

I don't even know if he can pay more in each month than he is ( he will retire in 7.5 years) and I think I read that the last 5 years of pay determine how much pension he will get??
Anyway, anything helpful will be much appreciated.xx

xylophone

http://www.nhsbsa.nhs.uk/Documents/Pensions/SD_Guide_(V15)_online_10.2015.pdf

marrbett

xylophone wrote: »

http://www.nhsbsa.nhs.uk/Documents/Pensions/SD_Guide_(V15)_online_10.2015.pdf

Thankyou so much.
I'll have a read and digest.
I may come back if I don't get it :rotfl: