Industry question prospect of contracting-out mis-selling

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Industry comments are mixed regarding a possible investigation by the FSA over mis-selling claims on contracting-in and out of the state second pension, previously known as Serps.

The City watchdog’s intention follows a report on the cost saving ability for having stayed contracted into the State Second Pensions scheme, as apposed to those finding themselves with £4 per week less by contracting out at various times since 1998. John Ellis, public affairs director at the Personal Finance Society says “any widespread mis-selling claims will be misplaced”. He says while the FSA says it will look into the matter of contracting out further, any investigation will need to balance up each and every case individually. Andy Agar, head of retirement product developme...

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