News
June 2007
The State Second Pension - were you wrongly advised to contract out?
The Financial Services Authority (FSA) has finished investigating sales of Appropriate Personal Pensions, which were used to contract out of the State Second Pension (previously known as the State Earnings Related Pension Scheme).
They have found that around 120,000 sales (1.5 per cent of sales) may have been advised wrongly.
You may be affected if you were:
- an employee at any time between 1988 and 1997; and
- advised to contract out of the State Earnings Related Pension Scheme (SERPS) using a personal pension between 1 July 1988 and 5 April 1997; and
- above a certain age – roughly 45 for men or 40 for women – when you contracted out, known as ‘pivotal age’.
If you meet all these criteria you should visit the FSA Moneymadeclear website and download the factsheet ‘The State Second Pension (formerly SERPS) – were you wrongly advised to contract out?’