Standard Life incorrect charges?

dacdac

I received a letter from Standard Life stating that they changed the way they calculated the charges back in 2001 and that they have recently discovered that they made a mistake which has caused an error in the valuation of my pension plan. Instead of being worth 18.7 k it is now worth 15.2k. Kind souls that they are they also sent me a cheque for £350 as a good will gesture.

Anyone else had this happen?
What to do now?
Cash the cheque and forget or pursue them for more information/ compensation?

Thanks

dunstonh

Anyone else had this happen?

yes

What to do now?
Cash the cheque and forget or pursue them for more information/ compensation?

If you dont know the reasons why and the letter doesnt state it then ask them why. However, why do you think you are entitled to compensation? Has this error caused you to be off work, lose your income, lose a limb?

MikeJones_2

dacdac wrote: »

...What to do now? Cash the cheque and forget or pursue them for more information/ compensation?

Hi dacdac,

It’s never nice to learn of an error like this one, but mistakes happen.

Whilst it was no doubt disappointing to discover the correct position, to consider a complaint for compensation you would need to demonstrate that you have suffered a detriment as a result of the misquotation.

In terms of how your complaint would be handled, an ombudsman would tell you that were never entitled to the higher pension fund and cannot claim therefore to have ‘lost’ because of it.

In addition to be successful in your claim, 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.

Establishing ‘loss’
In addition to the above, to be successful in your claim you would also 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/fund.

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 Inconvenience
Payments for distress and inconvenience are typically modest, in the range of £50 to £500, and are intended as a tangible acknowledgement of the upset caused. So, Standard Life’s offer of £350 does not seem to be unreasonable.

Hope this helps.

Mike

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.