Pensions & SERPS

[pmeswani]

Hi All,

Don't know how relevant this is to anyone, but have been digging around the idea of contracting out of SERPS for the purpose of my pension, and stumbled across the following article.

http://www.direct.gov.uk/prod_consum.../dg_180199.pdf

In essence, Protected Rights Pension limitations will be lifted next year, so anyone who has a Protected Rights Pension as well as a non-Protected Rights Pension can merge their pensions together rather than have them separated as of next year.

Also, if anyone is looking to contract out of SERPS / SSP can do so if their income is a tad over £5k (Can't remember the exact amount).

This whole thread could be pointless to a lot of people, but thought I let you all know what the options are, especially those who actively manage their pension plans via SIPPS.

(Note: Contracted out SERPS / SSP effectively puts any contributions into Protected Rights).

Just thought I should share this with the board.

[Fred Bloggs]

IIRC, the option to contract out of SERPS and receive a rebate to invest in a SIPP ends in 2012. No more rebates paid.

[pmeswani]

IIRC, the option to contract out of SERPS and receive a rebate to invest in a SIPP ends in 2012. No more rebates paid.

Correct, but no reason why you can't opt out this year though. As long as the scheme exists, there is no reason not to or never too late to opt out, even if it is for a year.

[Fred Bloggs]

Correct, but no reason why you can't opt out this year though. As long as the scheme exists, there is no reason not to or never too late to opt out, even if it is for a year.

Fair enough.