Standard Life pension fund/Capita

edited 30 November -1 at 1:00AM in Pensions, Annuities & Retirement Planning
5 replies 1.2K views
milly8823milly8823 Forumite
4 Posts
Hi can anyone help?

My father has just recieved a letter from Capita regarding his private pension. It is saying that there are not longer funds available to pay his pension after August payments as they are being liquidated.
As you can imagine he if very very worried and doesnt now what to do next.

Is anyone else in this situation and if so what advise can you give.

Thanks
From a very worried daughter.


:(

Replies

  • dunstonhdunstonh Forumite
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    I doubt its a private pension as a) capita wouldnt be involved and b) pension income is not dependent on funds being available (no in that way anyway).

    its more likely to be a defined benefit occupational pension. Although Standard Life wouldnt be involved in that case (unless he was an employee of standard life). A money purchase scheme would not be expected to have a problem with funds like that.

    What does the letter say and what type of pension is it?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • I will get the letter from my dad today. The pension is a private one as he was self employed. Once I get the letter i will know more info. Thank you for replying
  • Hi Sorry for the delay

    The letter is from Standard Life savings and the investment is a WRAP SIPP plan.

    The letter says that the "fund which has been invested in CF Arch CRU Investment portfolio has been suspended and no further disinvestment is possible at this time. StandLife therefore cannot continue to pay the income as there is insufficent liquidity in your SIPP Bank Account.

    Capita distributions are not guaranteed and are dependant on the sale of assets within the portfolio. Capita, the portfolio administrators, hope to widn this up over the next 3-5 years.

    The performance and the fund during this wind up phase is not guaranteed and may well fall. It has already been reduced by 30-40%
    over the last 12 months. The last payment that will be made will be the income due in August 2010."

    Dad has a financial advisor that is supposed to look after is interests and we found out that they new about this over 6 months and didnt even bother contact my dad who has been with the same company for over 35 years.

    Any advise would be helpful as we are not sure how he is going to manage.

    Many thanks
  • dunstonhdunstonh Forumite
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    Oh dear. Oh dear oh dear. At least it now explains it.
    Dad has a financial advisor that is supposed to look after is interests and we found out that they new about this over 6 months and didnt even bother contact my dad who has been with the same company for over 35 years.
    If you dad isnt a high risk investor or experienced investor he should complain. The Arch Cru fund was a pretty poor fund and has been suspended. its currently being wound up and is likely to only return around 60% of its original investment (minus existing withdrawals).

    The fund was incorrectly marketed as low risk. The fund had a high content of private equity and undisclosed assets. The undisclosed assets made it virtually impossible to judge risk level and private equity is generally high risk. The warning signs were there before the fund closed.

    Currently the FOS treat the fund as high risk. So, when looking at the advice, they look at the funds recommended and the overall risk. If this is the only fund in the SIPP (which it sounds like as the income could come from other funds) then it would be treated as a specialist investment and high risk. If your fathers risk profile isnt high risk then it would be classed as a mis-sale.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • Thank you very much for this. I will speak to dad and keep you updated.
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