Serps And Private Pensions

[Misky]

I contracted out of SERPS a few years ago on the advice of my Pension provider I think, then contracted back in when advised to do so. Adverts are popping up now saying I shouldn't have opted out and may be due compensation. Has anyone else done this? Is it true? I don't want to click on one of these ads and end up with a million similar ones in my inbox if it's just pie in the sky. Can anyone say whether it's worth me looking into it? Has anyone on here claimed?

[Old_Geezer]

No expert but I'd hope a private pension ought to do better than SERPS, or the industry would not exist. This is not another PPI like blitz, is it ?

[237SJ]

There`s a bit about it here under Were you wrongly advised to opt out of SERPS http://www.adviceguide.org.uk/wales/debt_w/debt_pensions_e/debt_types_of_pension_e/workplace_pensions.htm#h_opting_out_of_the_additional_state_pension

[Hypognosis]

Last time (that I can remember) there was a contracting-out sales drive, there were government 'incentive' payments. That may have been stopped when Labour got in, in '97.

Many employers' schemes are contracted out schemes. Instead, you said "pension provider", which suggests you might be self-employed or in a small enterprise. Is this the case?

[Hypognosis]

Scrolling fown a bit from where 237SJ's link leads to, I found this

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Were you wrongly advised to opt out of SERPS?

The additional State Pension used to be called State Earnings-related Pension Scheme or SERPS. A very small number of people above a certain age were wrongly advised to opt out of SERPS between April 1988 and April 1997.

If you think you're in this group of people, you could be entitled to compensation. You should first write to your pension provider, asking them to explain why you were advised to contract out of SERPS and to review whether this was the best decision for you.
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(there is more)

[Misky]

Thanks all. I started work in 1986 and it was not long after that that we were advised to get our own Private Pensions (mine is with Prudential) - I'm not self-employed, it was just what we were all advised to do at that time (well I was, and almost everyone I spoke to about it at the time did the same). it wasn't long after that that the letter came from Prudential advising me to opt out of SERPS. I might still have it, and the letter that came a few years later advising me to opt back in. I think it will be like the PPI blitz (I wasn't eligible to claim under that, worse luck), but if there's some money out there with my name on it that i could pay into my Pension fund now, I might as well have a go at getting it. I'll read the info. you've given me and put my mind to it. Thanks all! x

[ToraToraTora]

Yes all part of the miss selling scandal.

[Maydup]

I think I might have been wrongly advised to opt out during those years but it was by an adviser who is long gone now and the pension since moved to a new provider. Any suggestions?

[Hypognosis]

@Maydup

It's not the individual financial advisors who will be compensating you. The pension provider companies made a dodgy financial product and missold it.

The FAs were just intermediaries, in the same way that we do not claim against individual telesales operators for our PPI reclaim.

Even moving to a new provider I see as no obstacle. A recalculated transfer value will be required. The hard part is that your current provider did not have its hands on that extra cash and hadn't had the opportunity to earn interest on it for theirs and your benefit. I expect they may take a bite for commission/ admin charges of such recalculations and this is the unfair part. Normally, the passage of time permits gains which (can) more than make up for commission and admin fees but some are closer to retirement age than others.

[Maydup]

Thanks H, to clarify, do you suggest I contact the original provider? Just write to Dear sirs, At Company A?

[Maydup]

Thanks for asking the question Misky, it was on my mind too. If you do it I'll do it! Good luck.

[Hypognosis]

@Maydup

If you follow the link in 237SJ's post you should arrive in the middle of a longish page, at a section on opting out of S2P.

Scroll down to the next paragraph heading ("Were you wrongly advised to opt out of SERPS?") and it describes what should be in the letter plus a link to pensions advisory service if you need additional help.

hope that helps.

[Maydup]

Thanks again