Lost non-contributory pension money (thousands!)

tomanderson

Hello,

I have had 2 non-contributory pension schemes with 2 different employers over the last 5 years. One was worth approx £1,500 and the other £3,500.

As I worked for both employers for less than 2 years, and didn't respond to a request for a transfer in time (one of these I was out of the country) I have lost the money from both.

Is this legal? Is there anything I can do?

The letters weren't sent recorded so I don't see how they can even be sure that I received notice of the request.

I realise that the blame for this does rest with me, but I would like to know if there's a way out.

Cheers,

Tom

wireframe_2

I thought if you weren't there for 2 years, they gave you the money back. If they've not done that, then you should contact those employers and request your money. Perhaps a precursive phonecall to ask here it is, before a followup in writing. They may have your cheque hanging around, waiting for you to show up.

mrgibbson

I understand that you only get member contributions back. As this was non contributory, no member contriobutions were paid so nothing would have been due.

All legal. You could try and complain to the pension trustee of the schemes and then the pensions ombudsman - nothinig to lose?

DavidLaGuardia

A very long time ago pensions could be lost if you left before retirment since they were an incentive to stay loyal. This was all changed and those who worked for at least two years could retain frozen benefits. If they left before this it was equitable to refund any contributions they made but no more.
If you worked for less than two years, quite frankly you did not earn this "perk".. Complaining to the ombudsman will get you nowhere.

Suzkin

Hi,

I'm, sort of, in a similar situation, although am still within the 12 month deadline. As far as I'm aware, IF you were within the 12 months, then you would have been able to request a 'cash refund'. Note that YOU would have needed to ask for this, and complete a form, although I've been told that the pension provider would also write to you approx. 3 months before the 12 months is up, asking for your decision.

Also, as for refunds, you would only have been refunded the amount of money that YOU paid into the pension (i.e. NOT the employer) LESS National Insurance, and LESS income tax. This would mean a substantially lower cash refund - nothing like what you would have received if you had transferred out into another pension (e.g. even a stakeholder).

A cash refund is not an attractive option, but better than nothing.

DavidLaGuardia

Suzkin wrote: »

Hi,
A cash refund is not an attractive option, but better than nothing.

I disagree.

If you lose the tax and NI you simply receive what you would have got in your pay packet had you not made the contributios. Ignoring some interest that could have been earned in theory had the money been put in a savings account it is pretty much a neutral position.

This is precisely the reason why many people should join a scheme when they can, even if they do not think they will be in that employment for two years.
All too often such people end up staying longer than they anticipated, but lose out due to a delay in joining.
Even if it is just two years service they end up with, the benefit relative to what they put in to a final salary scheme or even a money purchase with employer comtributions is well worth it.
Alternatively, If they do leave before they have been there two years the money is refunded.
Hence there is virtually no risk against the chance of a gain.