Contracting out - lost pension?

[Thesockthief]

Many years ago I was employed in a role where I opted out of SERPS for a few years. As far as I am aware I was not opted into a workplace pension at that time and I have done a search on the government’s lost pension finder with no success. The appeal at that time was that I would pay reduced NI contributions, as it was a very low paid role and I wasn’t thinking about my retirement. However, I have recently read that the money that was saved on NI would have been invested somewhere. Does this mean that there would definitely be a scheme somewhere that the difference would have been paid into? Or were some people able to just pay a lower amount of NI with no investment? FWIW I have checked my pension forecast and will be entitled to £241.30 and I cannot improve my forecast any more so perhaps this is nothing to worry about?

I don’t think you could contract out without having alternative provision. Maybe try contacting the old employer to see if who the scheme would have been with?

You have built up to full state pension through your post 2016 contributions but there may also be a small pot somewhere.

Before 2016 if you were a member of an employer provided pension scheme you would be contracted out of the second state pension - SERPS etc. Those who were contracted out paid less in NI as they were not paying into SERPS.

The occupational pension would include some Guranteed Minimum Pension as part of whatever benefit it paid. Unless it was a public sector scheme which are 'pay as you go' contrbutions would be invested.

You say you've done some searching on government sites and drawn a blank.

What was the industry and do you remember who the employer was?

@Thesockthief too late to edit my post above but I'm not 100% certain that it was not possible to opt out of SERPS without being in an alternative employer provided scheme.

HMG has guidance here: https://www.gov.uk/contracted-out

@BromptotooIt was in the retail sector and the shop no longer exists. I’ve been in touch with one of the pension providers that came up on the list pension search but I’m not on the list. There’s another one that I’ve written to but not had a reply yet. I definitely remember being told I’d be paying less NI but don’t have any record or recall of a scheme.

“Lost pension” not list.

There's a government pension tracing service which might help

Find pension contact details - GOV.UK https://share.google/iCzerKH4bCgS7EwfE

Your contributions must have gone somewhere. If not a workplace pension then one provided by an insurance company. Mine was with Prudential. Did you see a financial advisor around the time you were opted out. Maybe for a mortgage? In the mid 90s at least, it was common to look at whole finances when doing things like mortgage applications and opting out of SERPs and into a private scheme would have been common advice given.

Following with interest.

Thinking some more I was opted out of SERPS etc as I was in an employer's scheme - Civil Service. I paid less NI as a result but was contributing to the CS scheme but at that time only the 'Widows and Orphans' bit of the pension was contributory - 1.5% I think. These days it'd be a lot more.

If the employer went bust did it's pension scheme get wound up?

The figure you mention for State Pension looks like the full amount. Some people who were more recently opted out are shocked to get less then that as contractedout years don't count in full to the new pension. However if you've worked since 2016 paying NI you've probably made up the difference.

This was early 90s. I think we did have a financial advisor come to the workplace and this was why I ended up opting out but don't have any paperwork relating to this. At the time I had just graduated, had no spare money, absolutely no savings or anything and had no thought for my future finances. I only worked there for a few years and then went abroad so it's all a bit sketchy. I'm wondering if it was possible at the time to just pay less NI without contributing to a scheme. In the way that people used to be able to get interest only mortgages with no repayment vehicle in place.

Following with interest as I’m in exactly the same position!

@Bromptotoo Yes, I've since made up the difference and will be eligble for the full pension when the time comes so perhaps it's not something I should worry about.I'm not sure.

If you can't be bothered to read the whole thread, at least read the op's original post. Op try Gretel
https://www.gretel.co.uk/

@saveforthatThanks. I’ve tried Gretel and it didn’t come up with anything at all.

Gretel keep searching as new companies come on board all the time so there is still a chance.

What was the name of the retail company you worked at? The HMRC have to pay the money somewhere so I'm certain it would have been paid into a private pension

i have the details of the pension schemes that the company used. I’ve been in touch with the administrators of the fund and they’ve confirmed that there is no record of me having any benefits transferred to the fund. There’s another scheme that entered the pension protection fund. I have contacted them but not heard back. I don’t want to say the name of the company on here.

It wouldn't have cost you anything to pay into a private contracted out pension. It would have been funded by HMRC. Your employer wouldn't necessarily have known anything about it. It would have been between you and the insurer.

If the old retailer went bust, the possible pension being with the PPF would make sense. If you’ve changed address they might also have lost ability to write to you.

Depending on how long you worked there - if less than 2 years could you have had a refund at the time?

If pension schemes can’t contact you or have no address for you they will usually contact HMRC at the stated pension age using your date of birth and NI number to get a current address.

Very rarely it is possible for older pensions with only small amounts in it to be absorbed/exhausted through charges but that’s quite unusual.

In any search requests I’d provide any previous names and old addresses as well as NI and DoB info.

The govt have been trying to build a pension dashboard but it’s been slow going and still not live yet - the idea being that you could sign up to a govt portal that would also show where any old pensions are. It’s a good idea and lots of work gone into it but we’re still waiting on delivery and with a kazillion pension providers meant to feed the system with the data it’s not difficult to see where problems can arise.