Contracting out of SERPS

[Scrag Meister]

I contracted out of SERPS in 1987, when I first started work.

I received a document this week from the company managing that part of my pension contributions saying I was losing the benefits of contracting out due to change in government legislation.

This wasn't very clear what was changing or how it would effect me.

Any one able to put it in layman's terms please.

[psychocandy]

I contracted out of SERPS in 1987, when I first started work.

I received a document this week from the company managing that part of my pension contributions saying I was losing the benefits of contracting out due to change in government legislation.

This wasn't very clear what was changing or how it would effect me.

Any one able to put it in layman's terms please.

Contracting out is ending in April 2012. Everyone will be contracted back in automatically.

[SueEllen]

Any one able to put it in layman's terms please.

linky - their stuff tends to be easy enough to understand. Look at the Q&As at the bottom.

[BolshieBastard]

I contracted out of SERPS in 1987, when I first started work.

I received a document this week from the company managing that part of my pension contributions saying I was losing the benefits of contracting out due to change in government legislation.

This wasn't very clear what was changing or how it would effect me.

Any one able to put it in layman's terms please.

They are telling you bulltulip. People who have opted out of SERPS have generally lost out regarding pensions.

I havent opted out since I left the civil service years ago and have no intention to do so.

[Gonzo]

They are telling you bulltulip. People who have opted out of SERPS have generally lost out regarding pensions.

That depends on circumstances and how much you trust that a government in power when you retire will honour promises that are made to you by the government today.

I have moved to a country where it is easier to qualify for the full old age pension than it is in the UK (they won't be able to afford to keep doing that by the time that I reach that age but heigh-ho) but they will deduct any payments that you receive from an overseas government pension from the amount that they will pay you. Some of the British expats moan like hell about that although I think it is fair enough.

Private pensions are not taken into account in that calculation so for me there was no point being opted into SERPS / S2P, better to divert the money into a private scheme.

[mudskipper]

Never got my head round all this stuff, but I was advised to contract back in several years ago.