Six million warned of new threat to pensions

Six million people were today caught up in a possible new pensions crisis over the scheme formerly known as Serps. Insurers have written to people who opted out of Serps - the State Earnings Related Pension Scheme, now known as the second state pension - telling them they should consider going back into it.

It makes no estimate of the possible loss pensioners face. The move affects people who took out private pensions instead of staying in Serps after being offered rebates on their National Insurance payments to quit the state scheme.