pensions

plgreenwell

I opted out of Serps in 1990-1995 with a private pension - I was then opted out with company pensions from 1995 - 2004 - from 2004 I have been opted back into Serps.A company has contacted me to say I may be entitled to compensation for the time I was opted out of Serps (14 years) as I was mis-advised.
Anyone been successful with this or know anything about it?

dunstonh

A company has contacted me to say I may be entitled to compensation for the time I was opted out of Serps (14 years) as I was mis-advised.

Almost certainly not.

Firstly, the company contacting you is not allowed to do so. Cold calling by claims companies is a breach of the rules and the main ones doing this are not authorised and operating illegally. Two of the most frequently mentioned claims companies doing this as tekram goldberg and morgan green.

Secondly, contracting out is not a mis-sale. There are benefits to contracting out and until 1997, the benefits of contracting out were significantly better than contracting in. In 1996, the SIB looked into contracting out and found that everyone who had contracted out was financially better off. So, your first period of 1990-1995 was fine. The second period with the occupational scheme doesnt count as many occupational schemes are contracted out but it means something different to contracting out using an appropriate personal pension plan.

The FSA did a review of contracting out over the last few years and found a failure rate of less than a few percent which is tiny. The failure applied to those outside of the pivotal age. This means that if you were contracting out and under the age of around 53 (the age changed over the years as the rebates changed) then you have little or no chance of any success on a complaint.

Yesterday, I posted a copy and paste of what is happening on the complaints front right now.
http://forums.moneysavingexpert.com/showthread.html?t=583885

If you look half way down you will find:
• Contracting out of SERPs - some claims handlers have picked up on these cases. In the main the only complaints being upheld are those outside of pivotal age or where funds don'tmatch the client's attitude to risk.

So, you can see, that unless between 1990-1995 you were in your 50s, you really dont have much chance of any success. Of course, this is why the small illegal claims companies want you to pay some money upfront because that is where they really make their money. It is also worth noting that the claims companies operating within the regulations are not handling complaints about contracting out due to the limited chance of success.