Pension misinformation

marion.h_2

I have just turned 60 and have started the process of claiming my pension.
I have a fund with the Social Housing Pension Scheme.
Some weeks back i requested my pension figures. Having recieved an estimate I made a decision to take my pension and requested the final figures so I could make my claim.The figures came and were the same as originally quoted. I proceeded with my claim only to be contacted yeaterday by the SHPS to say that the figures had been misquoted and my pension would be considerabbly less that the original quotation. They have conceeded that this was an error on their part.

My question is having started to make decisions which will affect the rest of my life based on their figures is there action iI can take against the SHPS. I am extremely angry about the whole situation as the effect will be detrimental to plans I have made based on their information.

dunstonh

I had a similar case with a personal pension many many years ago. The insurance company quoted an amount in writing and on the phone. Not just once but over a period of 5 years. They retired on that basis, moved out of London to the coast to finish their days in peace. When they went to commence the pension the insurer told them there had been an error and the pension was only about 10% of what they had been told. I entered at that point as they wanted to know what to do. A complaint was made. The insurance company rejected it. It went to the FOS and they rejected it. They sympathised with the situation but accepted that clerical errors can occur and that they were not entitled to any money apart from a goodwill gesture and apology from the insurer. The goodwill gesture was £250.

So, I doubt you will get anywhere.

cogito

My question is having started to make decisions which will affect the rest of my life based on their figures is there action iI can take against the SHPS.

I suppose it depends on whether you have actually suffered a financial loss as a result of their advice and on the face of things it would not appear that you have.

MikeJones_2

Hi marion.h,

Contact The Pensions Advisory Service if you wish to make a formal complaint. It's a FREE service and a TPAS adviser will mediate the situation and if it is unresolved may recommend the case proceeds to the appropriate Ombudsman.

Financial Loss
As a general guide, when an error or mistake is made like the one you have described you ought to put you back in the position you would have been in, had you been given the correct information in the first place. This means that you should be compensated for any irrevocable financial loss you have made as a result of receiving incorrect information.

First of all you would have to show that it was reasonable for you to rely on the quoted figures.

Next, you would need to demonstrate that you have ‘changed your position’, in other words that you would have done something that you would not have done if you had been told the correct amount of benefit.

Finally, you need to explain what loss you have suffered. Financial loss does not include that your benefits have gone down from the figures originally quoted; rather it is normally specific expenditure that you have incurred during the period when you believed you were entitled to a higher level of income.

However, there is a duty of care in these circumstances on you, the individual, ‘to mitigate’ the loss, as soon as you knew the true position. This means that you must have taken steps to reduce, as far as possible, the loss you contend that you had suffered.

Distress and Loss of Exectation
Compensation for 'distress' and 'loss of expectation' is less than most people think, often in the region of £250-£350.

Sorry to hear of your predicament and I hope you resolve it to your satisfaction.

Mike Jones

I work in the field of Pension Education and Pension Guidance in the UK. I am a current member of the Specialist Pensions Forum as well as being a Voluntary Adviser for The Pensions Advisory Service. I work with scheme members, employers, trustees, scheme administrators and advisers on most things to do with employer sponsored pension schemes. The views expressed by me in this thread are my personal opinions. You should seek professional advice from an appropriately experienced and qualified adviser. I am not an IFA.