SERPS

[Captain Scarlet]

I have received a letter from a company saying I contracted out of SERPS and have built up some contrabutions.

I am now wondering how I go about getting these back,can I put them into RM Pension or what is best option?

Any help would be most grateful before I contact this company as I am sure I may lose some money if I use them to sort it out thanks in advance.

[RobertT]

It sounds as if you have a DC pension pot from a previous employer, which was contracted out of the state second pension, also known as SERPS or S2P.

You may be able to transfer it into the RM Defined Contribution Plan if you’re a member(joined after 1st April 2008), or into another personal pension. Equally it may be beneficial to keep it where it is, but without knowing any specifics, it’s impossible to say.

You probably don’t need another company to transfer this money for you, as you should be able to do it yourself at no cost.

Bear in mind that you will not be able to access the money if you’re under 55. And that although a nice ‘extra’ pot of cash may seem like a bonus, it may well mean your state pension entitlement will be lower because you were contracted out. But that will always depend on your own circumstances.

[Captain Scarlet]

Thanks Robert, joined RM in 1987 so any other employment was very brief and not paid into any other pension scheme.
Was trying to find out on Gov website or speak with someone but this is proving to be nigh on impossible.
This company say I contracted out of SERPS but not when however they say I have built up some contributions?
I don't want to just forget about this in case my state pension is under funded if you see where I am coming from.
Would seem I contracted out in 1987 until April 2016/17, so I may have a shortfall in my state pension according to Tax office.
If I have paid 32yrs and minimum is 35yrs I still have at least 10yrs employment so will my state pension be affected? Cheers

[clashcityrocker]

It could just be a con?

[Captain Scarlet]

It could just be a con?

Exactly what Tax office are saying as they have had a few calls about this company called Profile Pensions but I am still concerned that I opted out under some poor advice and don't want to find out in 10/15 years my state pension is lower than it should be.

[RobertT]

Now you’ve given a bit more detail it does sound like some kind of scam.

But if you do have another pension from another job you may be able to trace it here: https://www.gov.uk/find-pension-contact-details" onclick="window.open(this.href);return false;

And you can check your state pension entitlement here: https://www.gov.uk/check-state-pension" onclick="window.open(this.href);return false;

[Captain Scarlet]

Thanks Robert, exactly what I have done

[rogersh]

You can get a state pension statement & check your National Insurance contributions record at the GOV.UK site.

[rogersh]

Would seem I contracted out in 1987 until April 2016/17, so I may have a shortfall in my state pension according to Tax office.

You would not have a shortfall in your BASIC state pension. The "contracted out" would be from paying either or both Serps/second state pension. Instead you have opted in to a company scheme taking advantage of paying less NIC's.

[RTP]

It could just be a con?

Exactly what Tax office are saying as they have had a few calls about this company called Profile Pensions but I am still concerned that I opted out under some poor advice and don't want to find out in 10/15 years my state pension is lower than it should be.

I've had two letters from this company in the last 6 months.

They both went in the bin.

[wallop]

Thanks Robert, joined RM in 1987 so any other employment was very brief and not paid into any other pension scheme.
Was trying to find out on Gov website or speak with someone but this is proving to be nigh on impossible.
This company say I contracted out of SERPS but not when however they say I have built up some contributions?
I don't want to just forget about this in case my state pension is under funded if you see where I am coming from.
Would seem I contracted out in 1987 until April 2016/17, so I may have a shortfall in my state pension according to Tax office.
If I have paid 32yrs and minimum is 35yrs I still have at least 10yrs employment so will my state pension be affected? Cheers

If you were contracted out at any point this money will be reduce your state pension,No matter whether you work 40 years or 50.
The basis they work on is that the pension you diverted these funds to has the responsibility for paying at least the remaining amount,What you basically did was swap the pension to your own personal pension.

I was contracted out for a number of years to be honest with hindsight i'd rather have not done it but at the time i had no real idea,I was given a form by my then union rep who said sign that and you'll pay less national insurance.

[RobertT]

Being contracted out doesn’t necessarily mean you’ll get less than the full state pension. It will be a personal thing dependant on individual work records, etc. Although the closer to SPA you are and the longer you’ve been contracted out, the more you’re likely to be affected.

If you’re still working and earning enough to fall under the National Insurance wing, you will still be increasing your state pension entitlement and could still get the maximum allowable, currently £159.55.
Alternatively, it’s possible to buy qualifying years you might have missed.

Personally I was contracted out for around 29 years with RM until it was scrapped in 2016, but if I work for another 5 years from now, taking me to 55, I will still get the full state pension, plus the contracted out benefits from the RMPP.

I would urge everyone to find out what their state pension entitlement is: https://www.gov.uk/check-state-pension" onclick="window.open(this.href);return false;

[Farah]

Were Royal Mail staff eligible for SERPs if they worked from late 1970s until 2002 with Royal Mail?

[renrag40]

If you register on the government gateway you can get a forecast of your state pension provision. I did mine earlier this year and it said I needed 4 more full years to qualify for the state pension of £168.60 and my estimate as of April 2019 was £152.63. I’m 55 and have been with RM since 1985. So I was contracted out for 31 years.

[RobertT]

Were Royal Mail staff eligible for SERPs if they worked from late 1970s until 2002 with Royal Mail?

With RM service between those dates you'll have been contracted out of SERPS the whole time. But you may have have been contracted in either before or afterwards via other employments?

The idea of contracting out was that your employers scheme was providing at least as much pension as you'd have got by contracting in, so you wouldn't necessarily be better off had you not contracted out.

As renrag40 says, get yourself a state pension forecast, to find out how much you're entitled to: https://www.gov.uk/check-state-pension" onclick="window.open(this.href);return false;