A SERPS Query

polybear

Hi,

Some years ago I successfully challenged Barclays for mis-selling a personal pension to me; as a consequence of this Barclays paid me compensation and I joined my company final salary pension scheme. The vast majority of my Barclays pension was paid into the company scheme (a little bit - just a few £K - stayed with Barclays for some technical reason that I can't remember now!).

I'm contracted out of serps for the Barclays scheme; my company pension scheme is also contracted out of serps.

I've just received a letter from Barclays asking if I want to opt back into Serps; they included an Inland Revenue form CA1543 which includes the words "I cancel the joint notice, form CA1542/CA8057, and wish minimum contributions paid into the APP/APPSHP scheme shown in part 5 to be stopped from the day after the cancellation date shown in part 5".

In part 5 there has been an Appropriate Scheme Number (ASCN) entered; in part 6 there has been a Scheme Membership Number entered.

Is it a good idea for me to contract back into serps insofar as the Barclays plan is concerned? Or won't it have any effect/cause problems because my company scheme is contracted out of serps?

I'm a male aged 42 by the way, and hope to retire at 50 (55 at the latest) - I have sufficient investments (I hope!) to live on until I can start receiving my company pension.

Many thanks.
polybear.

p.s. I also have company AVC's with Standard Life. Should I leave the Barclays pension pot where it is, or should I consider (can I?) transfer the money to the AVC fund? Obviously the transfer value will be less than the fund value. Thanks.

dunstonh

Is it a good idea for me to contract back into serps insofar as the Barclays plan is concerned? Or won't it have any effect/cause problems because my company scheme is contracted out of serps?

Or won't it have any effect/cause problems because my company scheme is contracted out of serps?

You are only contracted out on paper and not in monetary terms as the final salary scheme takes priority over the personal pension.

I also have company AVC's with Standard Life.

AVCs were once a good option but for many they are now obsolete or at least not as good as alternatives. That is worth getting reviewed.

Should I leave the Barclays pension pot where it is, or should I consider (can I?) transfer the money to the AVC fund?

You cannot transfer it into the AVC. The Barclays scheme contains your protected rights (which is why it wasnt transferred into the occ scheme as most final salary schemes will not take protected rights).

polybear

Many thanks for the reply.

AVCs were once a good option but for many they are now obsolete or at least not as good as alternatives. That is worth getting reviewed.

Any suggestions at what to consider please? Thanks.

polybear

dunstonh

Any suggestions at what to consider please? Thanks.

stakeholder pensions, personal pensions, SIPPs or ISAs. The in-house AVC could still be a good option if it can be used to enhance your lump sum or gets employer contributions.