Opting out of SERPs

Holls_dad

My wife recently found out from HMRC she opted out of SERPS from 1989 to 2002 and payments went to Clerical Medical Investments she phoned them but they can’t find the policy

What should we do next?

Has anyone any similar experience of the above

dunstonh

My wife recently found out from HMRC she opted out of SERPS from 1989 to 2002 and payments went to Clerical Medical Investments she phoned them but they can’t find the policy

Whilst you are contacting companies, it is probably best to use the correct term which is "contracting out of SERPS".  Opting out has a different meaning and may lead to confusion. 

Was your wife actually working between 1989-2002?  Or had an income high enough to pay national insurance?

It is quite common to be contracted out on paper but not have an income high enough for any contracted-out rebates to be paid.  In 1988, a lot of people signed up to be contracted out and a plan set up to receive the rebates.  However, if no rebates were received within several years, the provider would void the policy and it would have long dropped off their systems.

Holls_dad

She would have been earning 5k in 1989 to around £25k in 2002 she worked have been working full time during the whole period

xylophone

https://www.scottishwidows.co.uk/contact-us/trace-my-policy/
Worth a formal enquiry as  above?
Is this the only time your wife was contracted out?
Has your wife obtained a State Pension Forecast?
Is a COPE shown?

https://www.gov.uk/check-state-pension

dunstonh

Holls_dad said:

She would have been earning 5k in 1989 to around £25k in 2002 she worked have been working full time during the whole period

Did she join an occupational pension during that period?
Again, it is quite common for someone to fill in a contracting out form with an insurer only for it never to be activated as they became members of a contracted-out occupational pension instead.

Holls_dad

xylophone said:

https://www.scottishwidows.co.uk/contact-us/trace-my-policy/
Worth a formal enquiry as  above?
Is this the only time your wife was contracted out?
Has your wife obtained a State Pension Forecast?
Is a COPE shown?

https://www.gov.uk/check-state-pension

Yes COPE shown of £18.29 on the website

xylophone

Has she any documentation at all in respect of the CM policy?
Has she checked her NI record with DWP for contracted out years?

DaveMcG

Another possibility would be that your wife joined a contracted out money purchase scheme. These were permitted at the time and allowed the employer to direct reductions in national insurance into an employer's scheme.

Some of these schemes had high charges which could have completely eroded a small fund.