Contracting
Out explained and why you should ACT NOW
to trace your pension!
Over
the last 20 years, most employed people could
choose to be contracted out of the State Second
Pension, or its predecessor known as SERPS,
into a personal or stakeholder pension. In
return they would receive an annual rebate
of some of their National Insurance payments
invested into a personal pension. This money
is called protected rights, but you may also
know it as a 'contracted out pension' a 'SERPS
pension' or an 'Appropriate Personal Pension'
(APP). Since 1988 over six million people
have contracted out of SERPS with around £100bn
held in Protected Rights accounts.
Recent
legislation changes have affected how the
benefits in Protected Rights Pension schemes
can be paid out. Until now all the pension
fund had to be used to purchase an annuity
(or income) at your normal retirement age,
but it if the fund is invested in a new
style stakeholder pension it may be possible
to take 25% of the fund as a lump sum tax
free.
Are
you one of them?
How
can I find out if I have ever contracted
out of SERPS?
To
check whether you are or have ever contracted
out, call the HMRC Contracted Out Pension
Helpline on 0845 915 0150. Have your national
insurance number to hand.
If
you have contracted out of SERPS the next
step is to trace the pension scheme.
How
can I trace any pensions of which I have
lost track?
We
offer a service that can help you track
lost pensions, including personal pensions
or occupational pensions which may be 'frozen'
pensions.
Call
the Pension Tracing Service
0845
2 30 29 28
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