SERPS pension confusion.

jay9011

Hi, I'm in the process of trying to tidy-up my pensions. 

Back in 1989 I had just started my first job and I was advised to opt for a SERPS pension. 
The policy type was a NPI 'Spectrum Personal Pension Plan'. Now run by Phoenix Life and described as 'Unit-Linked'. 

Now, can somebody please explain in simple terms what this actually means. 
The policy advises that it can be accessed at 55, rising to 57 in Apr 2028. 

Do I still also have a normal state pension? If so, did the SERPS effect it in anyway? 

Any help would be much appreciated.

 

xylophone

Do I still also have a normal state pension? If so, did the SERPS effect it in anyway? 

In 1989, the state pension had two tiers, the basic and the additional (SERPS).

You "contracted out" of the additional part but not the basic.

https://www.drewberryinsurance.co.uk/pensions-advice/faqs/what-are-protected-rights-pensions


Have you obtained a state pension forecast?

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



You may be aware that a new state pension scheme started from 6/4/2016.  This is a single tier scheme.

At  6/4/16, two calculations were done to establish your 'starting amount" for new state pension.

Old Rules

NI years/30 (max) x £119.30 (Full Basic) + (Additional State Pension - Deduction for Contracting Out)

New Rules

{NI years/35 (max) x £155.65 (Full NSP)} - Contracted Out Pension Equivalent.

Your starting amount (foundation amount) was the higher of the two.

See https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/181237/single-tier-pension-fact-sheet.pdf

The actual figures for Basic and NSP at introduction were as in calculations above. 

jay9011

xylophone said:

Do I still also have a normal state pension? If so, did the SERPS effect it in anyway? 

In 1989, the state pension had two tiers, the basic and the additional (SERPS).

You "contracted out" of the additional part but not the basic.

https://www.drewberryinsurance.co.uk/pensions-advice/faqs/what-are-protected-rights-pensions


Have you obtained a state pension forecast?

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



You may be aware that a new state pension scheme started from 6/4/2016.  This is a single tier scheme.

At  6/4/16, two calculations were done to establish your 'starting amount" for new state pension.

Old Rules

NI years/30 (max) x £119.30 (Full Basic) + (Additional State Pension - Deduction for Contracting Out)

New Rules

{NI years/35 (max) x £155.65 (Full NSP)} - Contracted Out Pension Equivalent.

Your starting amount (foundation amount) was the higher of the two.

See https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/181237/single-tier-pension-fact-sheet.pdf

The actual figures for Basic and NSP at introduction were as in calculations above. 

Thanks so much, that's really informative. 

Albermarle

Now, can somebody please explain in simple terms what this actually means. 
The policy advises that it can be accessed at 55, rising to 57 in Apr 2028. 

The pension you have now with Phoenix Life, was originally funded by NI rebates ( which were in return for contracting out of SERPS) . However it is now just a Defined Contribution pension pot , just like any other. Where the original money came from is not relevant. The rules for how you can take this pension are exactly the same as they are for all DC pensions ( often referred to as personal pensions or SIPP's). It sounds like you may have other DC pensions? if so merging them is one possibility, and/or transferring older ones to a newer one with more flexibility.

This govt website is a useful resource.

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