Unfortunately, many people were negligently advised to opt-out of The State Earnings Related Pension Scheme (SERPS) by their employers or independent financial adviser even though they would have been better off remaining. Were you one of them? We’ll get your money back.
Make a claimSERPS was established in 1978 to allow people extra provisions on top of the state pension to help them through their retirement. Although the ordinary state pension is available for every eligible citizen in the UK, it is generally considered to be insufficient to sustain life in retirement.
The amount you’d receive from SERPS depended on how much you’d earned throughout your work-life, and you’d only be eligible if you made Class 1 National Insurance Contributions. SERPS members received an extra pension of 25% of their earnings (above an earning limit). Later, the amount was reduced to 20% for those retiring after 2010.
Financial advisers may have advised you to opt out of the scheme. In many of these cases, people would have been better off remaining in SERPS than contracting out. If you were advised to contract-out of your SERPS pension, you may be eligible to make a claim for negligent advice.
Sound familiar? Contact us today for a free initial assessment with one of our experts.
In the majority of cases, people who have contracted-out of a SERPS pension will pay less in National Insurance contributions and pay more into another private pension pot.
To begin with, the only people who could contract-out of their SERPS pension were those with final salary pension schemes. Examples include nurses, armed forces, public sector workers and the police. This changed, however, in 1998, where people with defined contribution schemes were also allowed to contract-out.
If you paid Class One National Insurance contributions you might have a SERPS pension, or might have already opted out.
To check if you have a SERPS pension, log in to your Personal Tax Account with HMRC which should show you your status. It may be that you need to create an account, in which case you will likely require your NI number, a recent payslip or P60, and a valid UK passport.
Speak With An ExpertYou MAY be able to claim for SERPS compensation if:
For more information, you can contact one of our mis-sold pension specialists for a FREE initial assessment on your claim. We keep things simple, focusing on the facts of your case, and if we think you have grounds for a claim, we work our hardest to get you your money back.
In a nutshell, SERPS scheme members received an extra pension of 25% of their earnings (above an earning limit). The upper earning limit was around seven times the lower one. Later, the amount was reduced to 20% for those retiring after 2010.
Contracting out (sometimes called opting out) of SERPS meant that people partially or completely gave up their SERPS pension benefits in exchange for a higher private pension and paying smaller National Insurance qualifications (or redirected NI contributions).
Sadly, some people received the wrong advice when it came to SERPS, and may now be worse off in retirement because of it.
Usually, this is because they were told to Opt-Out of SERPS by brokers or financial advisers.
You MAY be able to claim for SERPS compensation if:
If you paid Class One National Insurance contributions you might have a SERPS pension, or have already opted out of SERPs.
To check if you have a SERPS pension, login to your Personal Tax Account with HMRC which should show you your status. It may be that you need to create an account, in which case you will likely require your NI number, a recent payslip or P60, and a valid UK passport.
If you are entitled to a SERPS pension, you can start drawing it when you reach pensionable age. Since April 2016, anybody eligible for a SERPS pension may receive a single payment combined with their State Pension.
Through the current additional state pension, the maximum amount you could get is £176.41 per week. Of course, whether you’re eligible for the maximum amount depends on how long you were contracted into your SERPS, and how much you earned throughout your working life.