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Old 23rd September 2019, 19:06   #7
Darcydog
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Quote:
Originally Posted by Stevie25 View Post
That’s a fair point.
I worked for the Local Electricity Company for 25 years, all of them contracted out, but I have 15 odd years not contracted out.
So is the pension forecast accurate?
I use the HMRC website and log in.
I wonder how often it’s undated?
With only 4 years left until I am 66 - not much time to rectify any mistakes.
Perhaps it will all sort itself out, but anyone out there either just about to receive the pension or just started to receive.
Has it all worked out as you imagine?
Have a look at your company pension statement - you will see it is in two parts - the main scheme and the “Protected Rights” - the later is the bit accrued via you contracting out of SERPS.

At one time very different rules applied to Protected Rights whereas the Employer and the Scheme Trustees dictated the rules of the main scheme - although they did have to abide by HMRC/Inland Revenue rules overall. For example - initially you could not take Tax Free Cash from Protected Rights.

Now those rules are relaxed.

From 2016 all NIC have been increased and we ALL - even the self employed now get a MUCH improved basic state pension.

Those who earned a LOT and paid a lot of SERPS used to be eligible for enhanced benefits which could be substantial whereas the low paid and Self Employed just got the minimum.

Now it’s a level playing field - a long overdue improvement IMO.

Edit - Had to check the date - SERPS and S2P were scrapped in April 2012 and as far as I am aware whilst funds accrued via contracting out are still identified as separate to benefits accrued in the main scheme - taking the benefits are no longer subject to the original restrictions.

Last edited by Darcydog; 23rd September 2019 at 19:38..
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