Mis-sold Occupational Pension???

manabootadug

Okay the general consensus is that i've not been mis-sold my occupational pension (although it will be interesting to hear from MikeJones perspective).

I will add though, that I find i difficult to digest that even though a pension may perform well over the years....it can still be the case that it has been mis-sold. Yes i agree that I could have asked for financial advice at the point of signing up but when you're in your teens (at the time) its not something you give a lot of thought to. Like most responsible people above the age of 30, you look back on the decisions you make in life and wonder "what if". In this case "What if" i had gone into a private scheme? "What If" I had stuck the money in an ISA? Okay....the answer is probably....I would have lost out, but my point is.....the alterantives were not explored.

As it turns out, and i'm sure the likes of Jamesd, McKneff and Dunstonh all know what they're talking about....I seem to have had a good deal and it is likely that no redress would be payable.

I'll leave you for now with this question....However good or bad the advice given and however much an individul deserves a hug...is it right that a financially unqualified, unregulated low level HR Adviser (a representative of the company), advises on pensions?

dunstonh

is it right that a financially unqualified, unregulated low level HR Adviser (a representative of the company), advises on pensions?

They are not advising on pensions. They are providing information on what they offer. Most staff involved in occupational pensions go out of their way to avoid any advice or opinion. Although technically, they can actually legally provide more detail than most will do. They dont want to be accused of giving advice later down the road by someone (a bit like what you are doing here and some will protect their backsides more than others).

If you want advice, you use a financial adviser. You dont use secretary in the office of the financial adviser for the advice or you dont use the call centre staff of the product provider.

It should also be noted that a lot of occupational pension schemes have very well qualified individuals in the office.

CLAPTON

manabootadug wrote: »

Okay the general consensus is that i've not been mis-sold my occupational pension (although it will be interesting to hear from MikeJones perspective).

I will add though, that I find i difficult to digest that even though a pension may perform well over the years....it can still be the case that it has been mis-sold. Yes i agree that I could have asked for financial advice at the point of signing up but when you're in your teens (at the time) its not something you give a lot of thought to. Like most responsible people above the age of 30, you look back on the decisions you make in life and wonder "what if". In this case "What if" i had gone into a private scheme? "What If" I had stuck the money in an ISA? Okay....the answer is probably....I would have lost out, but my point is.....the alterantives were not explored.

As it turns out, and i'm sure the likes of Jamesd, McKneff and Dunstonh all know what they're talking about....I seem to have had a good deal and it is likely that no redress would be payable.

I'll leave you for now with this question....However good or bad the advice given and however much an individul deserves a hug...is it right that a financially unqualified, unregulated low level HR Adviser (a representative of the company), advises on pensions?

I do not have the expertise of most of the other people but the 'classic' cause of mis-selling pensions was to recommend a defined contibution scheme when there was a final salary scheme available.

In your case the only possible issue here is that they didn't tell you to seek IFA advice if you felt you required it... it's likely though that your pension booklet did just that.

bendix

Unbelievable.

The OP is thinking of claiming for compensation - and for what? Because his employer had the foresight to do what he/she couldnt think of doing themselves; getting a pension.

manabootadug

bendix wrote: »

Unbelievable.

The OP is thinking of claiming for compensation - and for what? Because his employer had the foresight to do what he/she couldnt think of doing themselves; getting a pension.

Okay.....you obviously think i'm jumping on the "claiming compensation" bandwagon....and your right....I am. Why not? Lifes too short, I'm a pleb and they're a multi-national who should know better than to deal in the financial minefield at such a low level. In this case it hasn't but it just as easily could have went the other way....and by the way...still could!

CLAPTON

manabootadug wrote: »

Okay.....you obviously think i'm jumping on the "claiming compensation" bandwagon....and your right....I am. Why not? Lifes too short, I'm a pleb and they're a multi-national who should know better than to deal in the financial minefield at such a low level. In this case it hasn't but it just as easily could have went the other way....and by the way...still could!

ah a troll

jamesd

manabootadug wrote: »

I'll leave you for now with this question....However good or bad the advice given and however much an individul deserves a hug...is it right that a financially unqualified, unregulated low level HR Adviser (a representative of the company), advises on pensions?

In today's environment you'll probably find that a company HR team will be careful not to give a push in either direction, with questions like yours being a major part of the reason why. Another reason is that the company loses money for every person who signs up for a final salary pension scheme, compared to those who don't sign up, so it's not in the interest of the company to push in that direction.

Back when you were doing it the HR person was acting directly against the financial interests of the company, but in favour of your interests and those of delivering a good employee benefits package.

The government is planning to take this out of the hands of companies and employees with a requirement that all employees be automatically enrolled in a pension scheme. Anyone who doesn't want to be a member will be required to opt out and will have any contributions made before that opt out refunded to them. This is because pension take-up rates are much higher when people have to opt out than when they have to opt in and that's to the long term benefit of most employees and the tax payer, who may otherwise have to pay means tested benefits to the employees with lowest pension provision.

manabootadug

jamesd wrote: »

In today's environment you'll probably find that a company HR team will be careful not to give a push in either direction, with questions like yours being a major part of the reason why. Another reason is that the company loses money for every person who signs up for a final salary pension scheme, compared to those who don't sign up, so it's not in the interest of the company to push in that direction.

Back when you were doing it the HR person was acting directly against the financial interests of the company, but in favour of your interests and those of delivering a good employee benefits package.

The government is planning to take this out of the hands of companies and employees with a requirement that all employees be automatically enrolled in a pension scheme. Anyone who doesn't want to be a member will be required to opt out and will have any contributions made before that opt out refunded to them. This is because pension take-up rates are much higher when people have to opt out than when they have to opt in and that's to the long term benefit of most employees and the tax payer, who may otherwise have to pay means tested benefits to the employees with lowest pension provision.

Makes sense!

jh2009

I have worked in pension schemes for 10 years and actually met members in much the same way as the poster met the HR Person in this case.

To be fair, many people that go to see someone in the office do so for one reason, they arent pension experts, but they feel they ought to give it some thought, and so seek out anyone who works in pensions to help them.

The HR person the poster saw was no pension expert, but had a job working in the pension team. The poster saw her and asked a few questions, she probably did her best to help. The poster showed an interest in joining so she helped him join.

Its highly likely that the poster has had a good deal. Hes has tax relief on his contributions (20%, maybe 21/22% when tax relief was higher) so if this money hadnt gone in as contributions, he'd only have had 80% of it as extra pay for savings. Plus he has a pension benefit which will provide benefits at retirement.

In terms of seeking action, then its hard really to prove the HR girl gave advice. The HR Team will be governed by financial advice rules, and proving what was said either way is impossible to prove really unless a tape recording or video of the meeting exists, which seems unlikely, or unless the HR Person has written a letter that blatently advises you to join.

In terms of financial advice its the responsibility of the individual. If the question had been asked "is this the best scheme" id been surprised if the HR Person would answer that. The Booklet im sure also says "seek financial advice", which is usually used when something like this is challenged.

At the end of the day remember the pension scheme is a benefit. A benefit you can choose to take or not take. If i offered someone £5 and they refused it, they couldnt blame me later on for not insisting i ask them to get their friends/family advice.

Pollycat

I think it's a shame that the OP has edited his first post so that the "rather complicated query relating to my occupational pension" is no longer readable but the replies are.