Standard Life pension system error and goodwill cheque

[Deleted User]

Hallo,

I have received a letter from Standard Life about my pension informing me that since April 2001 "certain system processes run since that time caused an error in the valuation of your plan. We have corrected your plan to put you back in the position you would have been in, had the error not occurred."
They then outline the impact on my plan at the date of correction which is 15 October 2008 and my plan at that date was reduced by 2100.443 units where a unit at that date was worth 107.7 pence. And that this has reduced the fund amount by £262.17 on that date.
They have apologised and enclosed a cheque for £230 as a gesture of goodwill.

So my question is, whether I should accept this settlement. It would seem to me that a system error not corrected for over 7 years wothr of incorrect statements is their problem not mine and I shouldn't have my plan reduced in any way. Does anyone know what I am entitled to in this situation?

Thanks,
pompolipoika

dunstonh

So my question is, whether I should accept this settlement.

What do you hope to achieve if you dont?

It would seem to me that a system error not corrected for over 7 years wothr of incorrect statements is their problem not mine and I shouldn't have my plan reduced in any way.

The law doenst agree with you. You currently have money in your pension which you are not entitled to.

To be honest, you are on to a winner here. Your pension is £262.17 gross worse off but you are being given a cheque for £230 net. That figure is the same £287.50 gross in the pension. So, pay it in to the pension and make yourself £23 better off.

alpha.tango

I received a cheque from Standard Life for £140 in November for the same reason with the same letter - I banked this about a week ago into an account in my name - but it has now been returned by my bank from Standard Life's bankers (HBOS) stamped "Payment Blocked" - Anyone else had this problem or know what is going on ?

dunstonh

payment blocked is not one I have come across before. When the drawer cancels the cheque the reason is "payment countermanded by order of drawer". So Std Life dont appear have requested it cancelled.

alpha.tango

dunstonh wrote: »

payment blocked is not one I have come across before. When the drawer cancels the cheque the reason is "payment countermanded by order of drawer". So Std Life dont appear have requested it cancelled.

My mistake the phrase used was "payment stopped" by rubber stamp on the cheque

dunstonh

Payment stopped is a lazy way of saying the cheque was stopped by Std Life. I am guessing the bank has dumbed it down since my days in the bank.