SERPS & company pension.

The_Economist

Back in the day when SERPS was still running I was opted out by the firm that I worked for.
It was a final salary pension.
My question is did they have the right to opt me out with out my permission...

Thanks in advance........

Dazed_and_C0nfused

The_Economist said:

Back in the day when SERPS was still running I was opted out by the firm that I worked for.
It was a final salary pension.
My question is did they have the right to opt me out with out my permission...

Thanks in advance........

What has prompted your question?

The_Economist

Hi Dazed_and C0nfused,
the question I posted is one that I've been looking for an answer too.
 You ask what has prompted my question, respectfully is this relevant..

Dazed_and_C0nfused

If it relates to the State Pension then quite possibly.

https://www.which.co.uk/money/pensions-and-retirement/state-pension/what-was-contracting-out-a581c3l1kqf4

The_Economist

Dazed_and_C0nfused said:

If it relates to the State Pension then quite possibly.

https://www.which.co.uk/money/pensions-and-retirement/state-pension/what-was-contracting-out-a581c3l1kqf4

Thanks for the Link, much appreciated. 

Brynsam

The_Economist said:

Back in the day when SERPS was still running I was opted out by the firm that I worked for.
It was a final salary pension.
My question is did they have the right to opt me out with out my permission...

Thanks in advance........

More accurately, you entered into employment which was contracted out of SERPS and your contract was required to specify this. You would also have been informed in your pension scheme booklet that membership of the scheme meant you were contracted out of SERPS.

By joining the pension scheme you implicitly gave permission; and by signing your contract you gave consent - either of those would have done, so you gave your permission.

The_Economist said:

Hi Dazed_and C0nfused,
the question I posted is one that I've been looking for an answer too.
 You ask what has prompted my question, respectfully is this relevant..

I suspect what Dazed was driving at (and which is why most people ask this question, which crops up regularly on this board) was whether you believed this meant you had been disadvantaged in some way (you haven't) or whether it impacts on your state pension (it does, but you're still better off than if you'd declined to join your company's pension scheme).

dunstonh

My question is did they have the right to opt me out with out my permission...

You did not opt out. Opting out has a different meaning.  You mean contracting out.

And the answer is that they had your permission.  You joined the scheme, you agreed the terms.  You could opt-out (in the correct sense) but you agreed to join the scheme which contracted out.  In return, you paid lower National Insurance and the scheme made up some or all of the difference (or more).

AnotherJoe

As above, and to add, in pretty much every example seen here on similar questions, the person has been better off. In fact i dont recall seeing an example where they were worse off though maybe there are some.

In any case your question is a non sequitur since its premise, they 'opted you out without permission" is incorrect.

The_Economist

Brynsam said:

The_Economist said:

Back in the day when SERPS was still running I was opted out by the firm that I worked for.
It was a final salary pension.
My question is did they have the right to opt me out with out my permission...

Thanks in advance........

More accurately, you entered into employment which was contracted out of SERPS and your contract was required to specify this. You would also have been informed in your pension scheme booklet that membership of the scheme meant you were contracted out of SERPS.

By joining the pension scheme you implicitly gave permission; and by signing your contract you gave consent - either of those would have done, so you gave your permission.

The_Economist said:

Hi Dazed_and C0nfused,
the question I posted is one that I've been looking for an answer too.
 You ask what has prompted my question, respectfully is this relevant..

I suspect what Dazed was driving at (and which is why most people ask this question, which crops up regularly on this board) was whether you believed this meant you had been disadvantaged in some way (you haven't) or whether it impacts on your state pension (it does, but you're still better off than if you'd declined to join your company's pension scheme).

No I didn't enter employment & the final salary pension knowingly it was contracted out of SERPS & my contract didn't specify this at the time...
I joined the companies final salary pension then they decided to go down the SERPS route a few years later of my employment without asking me if I wanted to or not...
I didn't sign anything to agree to be contracted out....

NottinghamKnight

The_Economist said:

Brynsam said:

The_Economist said:

Back in the day when SERPS was still running I was opted out by the firm that I worked for.
It was a final salary pension.
My question is did they have the right to opt me out with out my permission...

Thanks in advance........

More accurately, you entered into employment which was contracted out of SERPS and your contract was required to specify this. You would also have been informed in your pension scheme booklet that membership of the scheme meant you were contracted out of SERPS.

By joining the pension scheme you implicitly gave permission; and by signing your contract you gave consent - either of those would have done, so you gave your permission.

The_Economist said:

Hi Dazed_and C0nfused,
the question I posted is one that I've been looking for an answer too.
 You ask what has prompted my question, respectfully is this relevant..

I suspect what Dazed was driving at (and which is why most people ask this question, which crops up regularly on this board) was whether you believed this meant you had been disadvantaged in some way (you haven't) or whether it impacts on your state pension (it does, but you're still better off than if you'd declined to join your company's pension scheme).

No I didn't enter employment & the final salary pension knowingly it was contracted out of SERPS & my contract didn't specify this at the time...
I joined the companies final salary pension then they decided to go down the SERPS route a few years later of my employment without asking me if I wanted to or not...
I didn't sign anything to agree to be contracted out....

It would be very unusual to be a member of a db scheme and not contracted out, joining the db scheme will have meant you signed up to be contracted out, and this is a benefit for most if not all people, more so for many in transitional arrangements who have the opportunity to earn the same state pension as those who have paid the additional NI.

Dazed_and_C0nfused

The_Economist said:

Brynsam said:

The_Economist said:

Back in the day when SERPS was still running I was opted out by the firm that I worked for.
It was a final salary pension.
My question is did they have the right to opt me out with out my permission...

Thanks in advance........

More accurately, you entered into employment which was contracted out of SERPS and your contract was required to specify this. You would also have been informed in your pension scheme booklet that membership of the scheme meant you were contracted out of SERPS.

By joining the pension scheme you implicitly gave permission; and by signing your contract you gave consent - either of those would have done, so you gave your permission.

The_Economist said:

Hi Dazed_and C0nfused,
the question I posted is one that I've been looking for an answer too.
 You ask what has prompted my question, respectfully is this relevant..

I suspect what Dazed was driving at (and which is why most people ask this question, which crops up regularly on this board) was whether you believed this meant you had been disadvantaged in some way (you haven't) or whether it impacts on your state pension (it does, but you're still better off than if you'd declined to join your company's pension scheme).

No I didn't enter employment & the final salary pension knowingly it was contracted out of SERPS & my contract didn't specify this at the time...
I joined the companies final salary pension then they decided to go down the SERPS route a few years later of my employment without asking me if I wanted to or not...
I didn't sign anything to agree to be contracted out....

Wasn't the time to question this when the company started deducting the (in your eyes) wrong amount of National Insurance from your salary?