Pension “detectives” are being created across the UK, according to former pensions minister Sir Steve Webb, as many are on the hunt for old arrangements. These lost pensions could offer Britons a valuable retirement boost, but with plans for the Government’s pension dashboard on hold, they may be challenging to track down. Sir Steve, also a partner at LCP, shared a list of 10 top tips in an effort to help people maximise their chances of finding pensions from their past.
Find a former colleague and ask them for details of the pension scheme
Mr Webb suggests those who have lost track of a pension scheme should contact the people they used to work with when they were paying in, as these individuals may have details of the scheme.
Those who have lost touch with former colleagues over the years could use a social media website to find people who worked for the same employer at the same time as them.
Use the Government’s Pension Tracing Service
The free service is available through the Government’s website or via telephone on 0800 731 0193.
It is worth noting the service cannot find a pension for a person but could direct them with contact details for schemes linked to certain employers.
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Pension Protection Fund
Some employers went bust at a time when there was a shortfall in a person’s final salary pension scheme.
If this is the case, Mr Webb explained it may have transferred to the “lifeboat” Pension Protection Fund. There is a list of the 77 schemes covered on the PPF website.
Use your own paperwork
Documents accumulated over the years such as letters from a former employer or pension scheme could provide clues to where a lost pension could be.
Knowing a policy number or membership number is likely to be of most help, but even knowing the name of the scheme or provider can help.
Check about cashing out
Mr Webb explained: “Sometimes, the reason people can no longer find a pension is because they took their money out, perhaps when they changed job. This may be more common if you only worked for an employer for a relatively short period of time.
“You could check old bank statements for lump sum payments which could be a refund of pension contributions.”
Check old addresses
According to 2017 research, most people move a total of eight times in a lifetime, but very few people notify a pension provider when changing their address.
The scheme could be sending statements or other information to an old address, so it may be worth contacting the current residents to see if they can pass on any post.
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Check other changes to personal details
Name changes upon marriage, divorce, or other reasons might mean someone’s name no longer matches the name in which the pension policy is held.
As a result, the expert urged people to give their pension provider all the names by which they have been known to help with the checking process.
Ask HMRC for information based on National Insurance record
“Many company pension schemes and some personal pensions were ‘contracted out’ of part of the state pension system,” Mr Webb explained.
“This means that when you were a member you were paying a different rate of National Insurance and this will show on HMRC records.
Check former employers
Just like people can change their name, employers may also change the name of their business, for example, if they have been taken over.
In a similar sense, pension schemes are often merged or restructured, making it difficult to find old arrangements.
Mr Webb suggested in these circumstances it may be another firm which is now responsible for a person’s lost pension – and they may have details to help.
See if a pension scheme was ‘bought out’
Mr Webb said: “Many final salary pension schemes aim to have enough money in them to be able to afford to ‘buy out’ all of their pension promises with an insurance company.
“In this case, the pension scheme winds up and the insurer is responsible for paying pensions when they fall due; if you find that the pension scheme of which you were a member no longer exists, don’t give up hope – see if you can find media coverage of a ‘buyout’ of the scheme with an insurer and contact them.”
