Pension advise and Serps

[silverdale]

My wife opted out serps in the late 80's and paid into the Prudential but she seems to think it was only for a very short time before opting back as she was young at the time and low paid but she did work for the same company for 20+ years before been made redundant. She seems to think she only paid into the Prud for a very short period of time but cannot give a definitive time scale. She recently received a letter from the Prud, saying her pension plan with them right now stands at 40k. I mean, how can that be the case if she only paid in for under a year ?. She's a few years off doing anything about it but she's wondering what to do with it, leave it, move it to her new companies pension ?.

She also has about 6-7k pension with the Royal London from another job she left 2 years ago that's also frozen for now. Pensions are the one financial thing I, or I should say, "we" cannot get our heads round. She's now working in a NHS health Centre and has another pension scheme there's she's in.

While were on the subject, I once worked for Fairclough's building (not homes) for about 8-10 years through the 80's 90's on large projects throughout the Manchester area. I distinctly remember paying in to some kind of builders pension type fund for years as we would get a letter saying,

If you pay into this till your 65 you will be entitled to £200,000

which tickled us especially because at that age beer and work were our only 2 main concerns. I also worked for a few other companies that went bump over the years (not my fault ) so I got chasing them as I know I paid into pension schemes with them. Now they might not be worth much but it's my dosh so I used this to try and trace who holds the funds or which pension companies I paid into:-

Find pension contact details

Any advice or tips on tracing frozen pensions would be greatly accepted

 

[chookey]

I did something similar back in the early 90's. Spent a year wiring conservatories for a double glazing company. Paid into a private pension as did the employer. The total I put in was around £78.
Last year after tax I could have cashed it in for just over £600.

 

[silverdale]

So if you paid £78 for a year and it's now at £600 then I'm beginning to think my missus "thinks" she opted back out with the Prud, but actually didn't and carried on paying to a private pension and just didn't know.
Otherwise, how could her Prud,pension stand now at 40k unless she paid into it for a good few years. Like I said, she worked there for 20+ years.

 

[chookey]

I only stayed with that Company for a year, the Director fled to Spain with his mistress owing a fortune to the taxman. We weren't in the private pension for more than 2 or 3 months.
Later I'll see if I can find that evaluation letter as the total is actually more than £800. You only pay the tax for an early settlement.

 

[gez]

Just go online and check gov website, they will show all your payments
Check your State Pension

 

[nara]

Just go online and check gov website, they will show all your payments
Check your State Pension

That's for the State pension Gez. Silverdale is talking about Private Pensions.

 

[silverdale]

Just so there's no confusion, serps in the 80's is were the Gov let you opt out the state pension and contribute it into a private pension

 

[gez]

yep but it will tell what and when you made any contributions, so that should tell you how many years you opted out.worked for me in helping track down stuff .

 

[shaun127]

if she doen it in the 80's it could be 40 odd years of interest and growth in contributions , my younger sister did similar and hers was over 50k

 

[silverdale]

yep but it will tell what and when you made any contributions, so that should tell you how many years you opted out.worked for me in helping track down stuff .

Good idea thanks

 

[IANB]

She will have been contracted out for a period of time so it’s worth checking online she has enough full contributions for full single tier state pension.

 

[IANB]

On a similar note I was in a scheme in the 80,s to early 90,s it was a company paid scheme I never paid a penny in. I got a statement in the other day giving me options and was totally shocked st the size of the pot. It’s standing st £122 thousand and I still have a few years before I retire so it will grow a bit yet . I hope

 

[bamber]

My wife opted out serps in the late 80's and paid into the Prudential but she seems to think it was only for a very short time before opting back as she was young at the time and low paid but she did work for the same company for 20+ years before been made redundant. She seems to think she only paid into the Prud for a very short period of time but cannot give a definitive time scale. She recently received a letter from the Prud, saying her pension plan with them right now stands at 40k. I mean, how can that be the case if she only paid in for under a year ?. She's a few years off doing anything about it but she's wondering what to do with it, leave it, move it to her new companies pension ?.

She also has about 6-7k pension with the Royal London from another job she left 2 years ago that's also frozen for now. Pensions are the one financial thing I, or I should say, "we" cannot get our heads round. She's now working in a NHS health Centre and has another pension scheme there's she's in.

While were on the subject, I once worked for Fairclough's building (not homes) for about 8-10 years through the 80's 90's on large projects throughout the Manchester area. I distinctly remember paying in to some kind of builders pension type fund for years as we would get a letter saying,

If you pay into this till your 65 you will be entitled to £200,000

which tickled us especially because at that age beer and work were our only 2 main concerns. I also worked for a few other companies that went bump over the years (not my fault ) so I got chasing them as I know I paid into pension schemes with them. Now they might not be worth much but it's my dosh so I used this to try and trace who holds the funds or which pension companies I paid into:-

Find pension contact details

Any advice or tips on tracing frozen pensions would be greatly accepted

The state pension used to have two parts:
1. A basic pension, which was earned by anyone paying NI, whether employed or self-employed.
2. SERPS (later called the state second pension) which was earned only by employees and provided additional pension based on the amount of NI paid (or, effectively, based on earnings as NI is a percentage of earnings) but with an upper limit.

Employees could opt out of SERPS and pay into a private pension, in which case the DSS (as it then was) would also transfer some of their NI contributions into the pension. So, there was a lot more going into the private pension than just what your wife contributed.

 

[IANB]

Exactly. Now a single tier pension so a certain age group (if contracted out) can score and get the benefit of both

 

[gez]

I contracted out for a few years but still had full n i contributions so am on full pension

 

[silverdale]

On a similar note I was in a scheme in the 80,s to early 90,s it was a company paid scheme I never paid a penny in. I got a statement in the other day giving me options and was totally shocked st the size of the pot. It’s standing st £122 thousand and I still have a few years before I retire so it will grow a bit yet . I hope

That's something similar I vaguely remember happening to me while working for Fairclough construction, Faircloughs were eventually was swallowed up by AMEC.
i just remember getting this yearly letter saying "If you carry on paying into "XYZ" by the year xxxx you will receive 200k.
Ive used the Gov site and Faircloughs construction I worked for was listed in their search. I'm sure that if i am entitled to anything it will be a nice tidy sum but the way my luck goes I'll probably friggin owe them for overpaid hols

 

[IANB]

I contracted out for a few years but still had full n i contributions so am on full pension

Me too mate I I’m luckily in the age group that scores

 

[shaun127]

@IANB which age group do you need to be in to "Score"

 

[IANB]

Old enough to have contracted out and young enough to have made enough full contributions for full state pension. I’m 58 mate so I reckon probably fifty to 60

 

[chookey]

Old enough to have contracted out and young enough to have made enough full contributions for full state pension. I’m 58 mate so I reckon probably fifty to 60

You missed an important part out Ian, to score you also currently in your case first have to live till you're 67. No guarantee that it won't be increased yet again.