‘Contracting out’ or ‘Opting out’ was a very popular process and the financial advisers who recommended this pension advice clients to do so received commission for a successful sign-up.
This meant that the individuals made contributions to a private pension scheme and reduced or eliminated entirely their entitlement to SERPS.
Many employers signed up their employees to this system as it resulted in paying less NI (National Insurance) contributions.
Opting out was initially only available to people who made contributions to final salary pension schemes. It 1998 it was then widened to money purchase schemes.
Unfortunately if you contracted out after March 1997, you will have no SERPS entitlement in relation to earnings after that point. If you contracted out before that, your entitlement will be reduced in line with the deduction and you could possibly qualify to apply for contracted out of SERPS compensation.
How do I know if I contracted out of Pension SERPS?
Your pension provider should be able to advise you contracted out. Alternatively you could check your payslip or just ask the question to your employer.
If you’ve lost the contact details of your pension you could try The Pension Tracing Service.
Research suggest that those who work or have worked for public sectors (the Fire Service, the Civil Service, local councils, the NHS, the Police, Teaching services, the armed forces etc) are more likely to have been contracted out. Albeit this always the case and you should get in touch with us if you have any doubts about your refund.
Opting Out of Pension SERPS?
As more victims become aware of this mis-selling, we have seen a rise in enquiries for SERPS compensation in 2018 and 2019.
Whats the Criteria for Claiming?
The criteria for claiming is very strict and it is detailed below.
- Advised to contract out of SERPS by IFA
- Date of advice to contract out of SERPS – must be received between 1 July 1988 and 5 April 1997
- At the time they contracted out above 45 years of age for men and 40 years of age for women
- Earning over £10k a year every year
If you meet the initial criteria, we will require this additional information:
- Earnings each tax year whilst in the SERPS
- Period of time in the SERPS and date contracted out
- Earnings each year after contracting out
- Did you contract out of SERPS and move to a) private defined benefits scheme or b) pension in favour of investments that hinged on stock market performances
- Current position of those pensions
If you believe you meet all current criteria set out above please let us know.
Many of these people were given the advice to contract out of SERPS between 1 July 1988 and 5 April 1997.
The Process for claiming Missold Pension SERPS compensation
Many people who were given bad pension advice and advised to contract out are turning to websites and forums similar to Martin Lewis SERPS compensation advice.
Although victims can act litigant in person, the process for claiming SERPS compensation can seem complicated. Allow ClaimExperts.co.uk to deal with the stress and complexities and benefit from years of experience in achieving a ‘win’ for our clients.
The precess for reclaiming compensation is as follows.
- We will initially look into and calculate your ‘surplus earnings’.
- We do this by working out the difference between the lower and upper earnings limit for each of the tax years you were a SERPS member and opted-in. This ‘figure’ will rise until you reach the age of state retirement.
- Your total earnings for each tax year between 1978 and 1988 will be divided by 4 and total earnings for each tax year between 1988 and 2002 will be divided by 5. We then add these two figures together.
- The result calculated will then be divided by the number of tax years that passed between 1978/79 and the year in which you reached or will reach the age of state retirement.
- The final figure calculated will show us how much you may be able to re-coup in compensation.
Opting Out of Pension SERPS? Why use us..
As more victims become aware of this mis-selling, we have seen a rise in enquiries for SERPS compensation in 2018 and 2019. And we want to help.
ClaimExperts.co.uk deals with all forms of pension and investment mis-selling and compensation, including SERPS mis-selling.
We are fully authorised and regulated by the Solicitors Regulation Authority.
We know that working out whether you have been affected by SERP mis-selling or incorrect pensions advice can be complex. Are are here to make the whole process for obtaining SERPS compensation that bit simpler.
If you opted out of SERPS, you could be entitled to compensation. Get in touch today for a no-obligation review…
Talk To Us About Your SERPS Pension Compensation Claim Now
The SERPs Claims process with us is relatively straight forward. We offer a free no-obligation pension review for your potential pension SERPs claim by completing our quick enquiry form, click here to get started.