Defined benefits pension not paying out

nollag2006

My Dad took early retirement about 2 years ago, and his final salary pension (plus a lump sum) was due to commence on December 28th

Six weeks later, and he has not received a penny.

The company, and the pension trustees, are telling him not to worry but that they are just pulling the funds together, and he should be paid any day now. The company’s lawyer, who is also supposed to be working on his behalf, has also fobbed him off.

This is all very worrying to me. I would have thought that he has strong legal rights to get his pension, particularly as the company have said the pension fund was in surplus.

What are his next steps to ensure he gets his pension ASAP?

KingCheeseZombie

Depends on the scheme administrators - they will have minimum target times they have to meet when paying a new pension. 6 weeks isn't really a lot though (in terms of pensions administration) - some retiring NHS staff members don't get there NHS Pensions for months - this is normally due to the administrators not having received all the information (including signed pieces of paper) they require to authorise the payment.

I would read the regulations that govern them to see what the maximum length of time they are allowed before paying. However, if there are mitigating circumstances (i.e. lack of required information/authorisation) then there could be a good reason why it is being held up.

To note: any late payment (i.e. after the maximum time allowed within their guidelines) of pension in the NHS Pension Scheme would usually include monies to cover lost bank interest while the money was not in your account any time after it should have been. Again depends on the scheme - but worthwhile checking.

Debt_Free_Chick

What has happened so far? Has your father signed any papers? Produced all the documents requested? What correspondence has there been?

chesky369

Who precisely will be paying the pension into your father's account? Will it be an insurance company or will it be through his ex-employer? If the latter, ask if it isn't possible for him to have an advance on the payments , rather like a 'sub' on a salary.

nollag2006

He has submitted all the documentation. The insurance company claimed today that this was an oversight on their part.

I feel a complaint to the FOS coming on...