Opted Out Of Serps In 1980's-help

toozie_2

I'm sure there must be a thread on here about this, I'd really appreciate if someone could point me in the right direction please.

Yesterday I had one of those 'cold call' phone calls asking if we'd claimed back any charges on exeeding our limit on credit cards etc. Almost put phone down, then they asked if anyone in the house had opted out of SERPS in the 1980's as there could be a compo claim due to us, well yes I knew OH had, but I said 'NO' and put the phone down.

It's now got me thinking, OH opted out in about 1986/87 with the then Midland Bank (HSBC)would have to look up proper dates. We have continued paying a small amount into this pension from that date, but i must say we don't really bother looking at the statements.

SERPS is no longer is it? What should my procedure be now?

Thank you in advance, I find pensions a nightmare!!

dunstonh

hen they asked if anyone in the house had opted out of SERPS in the 1980's as there could be a compo claim due to us

Contracting out of SERPS is not a mis-sale. Its a decision with pros and cons. There is no compensation due to you. Any complaint you made would follow standard FSA set rules on complaints and if upheld a redress calculation would be made if you were mis-sold and found to be in a shortfall position.

The FSA did a review of contracting out sales to look into mis-sale claims but found only 1.5% of all those contracted out were potentially mis-sold. Here is the FSA information on that: http://www.fsa.gov.uk/pages/Library/Communication/PR/2007/059.shtml So, the odds of a complaint being upheld are very low. There is also a document with a flow chart to help you decide if you have been contracted out correctly or not: http://www.moneymadeclear.fsa.gov.uk/pdfs/s2p_wrongly_advised.pdf

The SIB also did research in 1996 and found that everyone contracted out to that date was financially better off.

jamesd

toozie, it's a scam. They take money to make the claim even when they know that there is no real chance of success. In the few cases where there is success the redress payment goes into the pension and the person claiming has to pay them their fees from money outside the pension.

What you should do is pay attention to the statements and see how the money is invested and consider how well it is growing. Also check whether the OH is still contracted out or not. SERPS is now replaced by S2P, a less good deal for middle and higher earners. Also worse rebates into personal pension plans for those who contract out.