Pension advice

jojovw

Hi,

I would appreciate any advice re the following subject please.

My dad paid into a company pension for 19 years. When he was made redundant he opened a private pension paying in the lump sum from the 19 year company pension. He then paid into this for a couple of years before he died in 1992 aged 48. Apparently he was badly advised by his 'insurance man', my mum was told after his death the that the pension laws had changed and she was not entitled to the money, they would only pay a minimal amount to her once a year but the company that now held my dad's pension would keep hold of the money. The money will only be released to my mum's children on her death.

I am interested to know if my mum is entitled to claim that money as I know my dad would be furious that people are keeping and using his money to make more for themselves and not letting the person who should have it, have it!! I know my dad didn't pay into it so other people could benefit, it was for my mum and dad to benefit from from.

I would like to know if the laws have changed in any way so my mum can claim what is rightfully hers. If anyone can help with advice and information I would really appreciate it. My mum is now a pensioner and retired herself and is struggling on her state pension, that money could really help make her life more comfortable, as it was intended.

Thanks very much for help. Regards Jo

MikeJones_2

Hi jojovw

jojovw wrote: »

My dad paid into a company pension for 19 years. When he was made redundant he opened a private pension paying in the lump sum from the 19 year company pension.

This is known as a pension transfer and if the company pension was a defined benefit schemes (e.g. a final salary scheme - which is one type of defined benefit pension scheme) then there were strict rules governing the way these had to be handled by advisers.

A 'review' of all pension transfer was orderd to be conducted by the then financial services regulator, FIMBRA (subsequently the Personal Investment Authority and currently the Financial Services Authority Ltd).

Under certain circumstances where the advice given to transfer was deemed inappropriate, compensation was paid or the member was reinstated back into the original company pension scheme if that was an option.

jojovw wrote: »

He then paid into this for a couple of years before he died in 1992 aged 48. Apparently he was badly advised by his 'insurance man', my mum was told after his death the that the pension laws had changed and she was not entitled to the money, they would only pay a minimal amount to her once a year but the company that now held my dad's pension would keep hold of the money. The money will only be released to my mum's children on her death.

It's worth writing to the company involved and marking the letter Complaint - Pension Transfer Advice. You need to give a brief description of events and why you think there are grounds for complaint.

The problem you have hear is the timescale. If you were offered a review some years back (as it sounds like you should have been included as part of the Pension Review) and it was found that no wrongdoing occured - or if you failed to accept a review, the Limitations Act 1980 may restrict you.

This Act provides that you are able to claim for actions up to 6 years. The 6 years start from when the mistake was made, or when it should have been discovered.

If all else fails, and for peace of mind - contact The Pensions Advisory Service who will help/guide you for FREE.

Hope that helps.

Mike

I work in the field of Pension Education and Pension Guidance in the UK. I am a 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.

EdInvestor

jojovw wrote: »

.. my mum was told after his death the that the pension laws had changed and she was not entitled to the money, they would only pay a minimal amount to her once a year but the company that now held my dad's pension would keep hold of the money. The money will only be released to my mum's children on her death.

Do you have anything in writing related to this? Typically with a private pension, when the holder dies before taking the pension, the trustees will pay the fund out in cash to nominated beneficiaries tax free.

What type of private pension was it?

dunstonh

I'm not sure the OP is quite up with the facts. A couple of things suggest that.
1 - occupational pension transfer but then paying into same pension for years after. Normally in that era you would use a Section 32 on occupational transfers and you wouldnt pay into that. Contributions would have been into a personal pension. So there was probabably a personal pension and a section 32 rather than just one product.
2 - death benefits in this case dont match the generic for personal pensions.
3 - The timescales mentioned could fall before personal pensions were introduced so it could involve a retirement annuity contract in there and death benefits on those were different.