Serps

juleswill1

Hi I opted out of the state pension in the 80's and money was put into a stakeholder pension plan, this appears to have been stopped now as I have received a letter cancelling payments. How do I get the money invested in this transferred to my current pension plan which is with the NHS as I contacted the co and tried to cash it to which they replied I couldn't, is this correct and can I transfer. If not what do I do with the money put into it?
Thanks for any info

dunstonh

Hi I opted out of the state pension in the 80's and money was put into a stakeholder pension plan

No it wasnt. Stakeholder pensions were introduced in 2001. If you contracted out at the earliest point in 1988, it would have been an appropriate personal pension.

this appears to have been stopped now as I have received a letter cancelling payments.

The NHS pension is contracted out so that takes priority over the personal pension.

How do I get the money invested in this transferred to my current pension plan which is with the NHS

Ask the NHS pension scheme adminstrators who much pension will be bought from the value of your personal pension protected rights value. Compare the benefits from both and see which is best. If the NHS is best then transfer it.

I contacted the co and tried to cash it to which they replied I couldn't, is this correct

Yes. You cannot cash in pensions. The tax benefits are given to fund your retirement and the Govt insists they are used for retirement.

juleswill1

Thanks for your reply
NB I got the info that it was a stakeholder pension from the info that was on the cancellation letter. Does that mean it has been changed to a stakeholder pension at some point following opting out? If so does the rest of what you said still apply? I joined the NHS in 2002 and the cancellation letter is dated 2007?
Thanks

dunstonh

NB I got the info that it was a stakeholder pension from the info that was on the cancellation letter. Does that mean it has been changed to a stakeholder pension at some point following opting out?

Only way that can happen is if you transferred the pension into a stakeholder post 2001.
If so does the rest of what you said still apply?

it doesnt matter. There is no difference between personal pensions and stakeholders from the level you are concerned with.

I joined the NHS in 2002 and the cancellation letter is dated 2007?

So, you became contracted out with the NHS scheme then. On paper the personal pension was still contracted out but wasnt receiving any rebates. A bit like having an open account but not paying into it. The letter to tell you to contract back in is probably because a) you havent had any rebates b) you are reaching the pivotal age you should contract in (around age 40-45). c) the provider is bulk contracting everyone in if they can as their pension is naff.

However, that bit of information also means that you will not be able to transfer your pension to the NHS. The NHS guide on transfers says (copied and pasted):
You must apply within 12 months of joining the NHS Scheme and be under age 60


when you apply.