TRACK DOWN A LOST PENSION
LOSING track of an old pension is surprisingly easy. Unlike a tenner that slipped down the back of the sofa, it won’t just reappear, so you’ll need to put in some effort.
You might suspect you have accumulated pensions at old jobs, or you may have saved into an insurance company pension and then given up somewhere along the way.
One of the first questions to ask is whether you have actually lost the pension at all.
You may have a certificate or payslips showing you’ve paid money into an occupational pension scheme. But these do not necessarily mean you have a pension, because at one time it was common for contributions to be refunded to employees who left a company.
Generally, if you left an employer before April 1975 you’ll have simply received a refund of contributions — unless you were in the scheme for a very long time, say 15 years or more.
Between April 1975 and April 1988, five years was the typical minimum service — and you had to be over 26 — otherwise contributions would be refunded.
After 1988, you should be entitled to a pension as long as you did at least two years’ service.
Women had an added obstacle in the Sixties and Seventies because some industries, including banking and the Civil Service, paid what was sneakily known as a marriage gratuity. Employers handed cash to brides with one hand while taking away their pension with the other.
If you believe you have a lost pension, then Pension Tracing Service should be your first port of call.
Collect as much information as you can, such as the name of your employer and any previous or subsequent names you’re aware of it having; the type of business it ran; any addresses you have for it; and when you believe you were a member of the scheme.
The service should then be able to provide the names and addresses of all the schemes you might have been enrolled in.
There’s also a possibility that the National Insurance Contributions Office (NICO) may be able to help.
Schemes were often contracted out of state top-up pensions such as Serps. The employer scheme had to promise to pay you a pension at least equal to the one you would have earned from Serps — and NICO should have records.
If you are looking for a personal pension, or perhaps were sold a pension by an insurance company representative, then it’s possible the firm you knew has vanished.
Many were taken over, merged or changed their names and, in typical insurance company fashion, they often failed to tell their policyholders. More than 100 old funds are now owned by one company, Phoenix Life, but yours may not be one of them. Its list includes names such as Alba Life, Britannia Life, Royal & Sun Alliance, Scottish Mutual, Scottish Provident and Pearl Assurance.
Surprisingly, neither the Financial Conduct Authority nor the Association of British Insurers has a definitive list available to consumers of which c ompany now owns whi c h funds. However, as with occupational schemes, the Pension Tracing Service should be able to help. Once you have the name of the new owners you will need to provide as much information as you can. Do not part with original documents unless specifically asked to — and then make copies and send everything by ‘signed for’ post.
Be warned: some are far more efficient than others. Do not accept no for an answer and be prepared to push the issue up the food chain. If they are not cooperative, tell them you wish to register an official complaint — this forces them to add you to their complaints data, something they will not want to do.
Alan Higham who runs pension advice website pensions
champ.com, says it took several years to force a company to pay his father’s pension.
‘He had all the original documents yet the company still denied it had responsibility for the pension. He should have drawn it when he was 60 but did not get his first payment until he was 67,’ says Mr Higham.
If you are hitting a brick wall with an occupational pension or private pension, then contact the Pensions Advisory Service on 0300 123 1047. It will need as much information as you can find, such as dates of employment and any certificates or documentation.
It can advise on the next steps and, if necessary, guide you through taking your case to the Pensions Ombudsman.
If you’re not sure whether you had a personal pension, you could try the Unclaimed Assets Register at uar.co.uk. You can call 0844 4818180 but it costs 7p a minute, plus your phone company’s access charge.
OF COURSE, forward planning is the way to avoid these issues and there are a number of simple rules. Always keep documentation showing when the pension was set up, what you paid in and any changes to contributions.
Make sure you tell them when you move home. This means writing to or phoning the pensions firm or to the pension trustees or human resources department of your current or former employer.
If they don’t acknowledge your letter or call in writing, then pester them until they do. It should be as simple as that.