A SERPS pension protects UK citizens from hardship in their later years. You may have a SERPS if you made contributions to National Insurance prior to April 2002. However, many UK residents are unaware that there are millions in unclaimed pensions. All anyone needs to do to claim a SERPS pension is to apply.
In this article you will discover more about:
- An Explanation of SERPS Pensions
- SERPS and Personal Pensions
- Billions Exist in Unclaimed Pensions
- Reasons for Unclaimed Pensions
- How to Track Down SERPS Pensions
- Time Limits on Getting Unclaimed Pensions
An Explanation of SERPS Pensions:
SERPS stands for the State Earnings-Related Pension Scheme. It was an additional pension scheme available to UK citizens until 2002. The programme provided a pension for individuals who worked and paid National Insurance contributions. The State Second Pension (S2P) replaced the SERPS pension in 2002.
SERPS and Personal Pensions:
Recipients had an option to apply to S2P pensions or to contract out of the government programme and transfer their earnings to personal pensions. Contracting out of the government programme meant paying lower National Insurance contributions. The transition from the SERPS pension program to personal pensions had consequences.
Billions Exist in Unclaimed Pensions:
A May 2013 article in the Mirror claimed there were as much as £5.5 billion in unclaimed pensions including SERPS pension programmes. The Mirror reported that Age UK showed one in three pensioners struggle to make ends meet. The Mirror also quoted Age UK’s charity directornefits are failing to reach some of the poorest and most vulnerable older people in our society.”
Reasons for Unclaimed Pensions:
Unclaimed pensions exist for a number of reasons. Pensions go unclaimed until its owners, beneficiaries or family members claim the benefits. For living plan owners, pride, embarrassment or belief that applying for claims is a complicated process. Such thinking prevents many from filing claims.Other reasons include company mergers, company name changes, or recipients moving jobs.
How to Track Down SERPS and Private Pensions:
Tracing pensions begins with the our pension tracing service, It is a free pension tracing service to track down contact information on a variety of plans. Give the service as much information as possible. To get SERPS pension benefits, participants had to pay National Insurance contributions prior to April 2002.
Participants and beneficiaries of contract-based, unclaimed pensions have 10 years after passing the state pension age to file their claims. For trust-based unclaimed pensions, there’s a shorter timeline. Participants and beneficiaries have six years after passing the state pension age or after the owner dies to file claims.
Unclaimed pensions exist in the millions. Recipients and beneficiaries track information about old pension schemes including SERPS pension plans using the Pension Tracing Service. Even with a little information, the service tracks down pensions including a SERPS pension. Depending on the pension type, participants have six or 10 years to file a claim. So, sort out pensions now to obtain a better financial situation later.