Company pension wanting to reclaim payments?

EternallyGrateful

It now seems like this has been resolved but I wanted to make a comment anyway. Yes it is the fault of the recipient of the money - ignorance is never an excuse. However, the company were able to generate a letter triggered by the event of your sons 21st birthday. Doesn't that suggest that they fully expected to pay until he was that age? If there was a 'full time education' restriction on the policy then surely an 'admin event' should have triggered at each birthday following your son being legally allowed to leave full time education. Is it not negligent on their part that they risk their investors money by not having such a very simple safeguard in place as an annual trigger? Yes kgldsun, it is your fault but this company are complicit by their negligence. Report them to the ombudsman or the FSA.

EternallyGrateful

Meant to put this link in above response: http://www.financial-ombudsman.org.uk/default.htm

trina2010

i dont think the financial ombudsman is the next step.
The company have to be given a chance to investigate what has happened and where the fault lies first, then if you are not happy with the outcome of the investigation the ombudsman is the next step.
You are perfectly within your rights to make a formal complaint for investigation into why you were not contacted each year and why this has only come to light now.

Going to the ombudsman or FSA for the sake of what could be a simple admin error to which an agreeable resolution could be found is of no benefit to anyone right now, it certainly does not seem anything near 'negligence'.

EternallyGrateful

trina2010 wrote: »

it certainly does not seem anything near 'negligence'.

If you look up the legal or dictionary definition of the word "negligent" then this company have been just that. Even an "admin error" is negligence - especially given the circumstances. Indeed, if it is an admin. error then surely that would have been picked up at 21st birthday trigger yet they still demanded all the money be repaid without apology.

I think it's disgraceful. Maybe the FSA or ombudsman are not the next step but I personally would accept nothing less than most (if not alll the 'debt' being written off.

dunstonh

Report them to the ombudsman or the FSA.

The FSA do not handle consumer complaints along with the fact that it sounds like a defined benefit occupational scheme. So, FSA/FOS are irrelevant.

Yes kgldsun, it is your fault but this company are complicit by their negligence.

You only have one side of the story. What would you say when the pension administrator then goes on to supply a copy of the letter reminding the op to let them know when the child is no longer in eduction?

I think it's disgraceful.

Thats very strong on a case where we only have the op's side of the story. I am sure that if the letter explaining the payouts and what to do was also shown to you then you would take a different view.

Most likely thing that has happened here is that the op has forgotten. Not intentional by the OP (although many do try it on), no negligence by the company just simple forgetfulness.

jamesd

If it's taken to the ombudsman now the ombudsman would just pass it on to the company as a complaint. You can't take something to the ombudsman unless a company has investigated a complaint and issued a final decision (or unless it simply refuses to give a final decision).

I don't think that any negligence here is solely by the pension provider. The pension provider didn't have much reason to apologise: they had been cheated by kgldsun who failed to inform them, as was required, that the entitlement to the extra payment had ceased. Their opening letter probably was one that avoided casting much blame in that direction out of politeness and if there's now been an attempt to avoid repayment it'll push them more in the direction of believing that it was a deliberate fraud rather than oversight.

I assume that kgldsun really just forgot that it was only to be paid while in full time education but that's not how it will look at this point.

I agree that it's disgraceful. But it's not the pension payer who's acting disgracefully. The money was paid because kgldsun didn't inform them as was supposed to be done and now seems to be trying to get out of repaying the improperly acquired money. The right thing to do when you discover that you've been wrongly paid money is to come to some sensible arrangement to repay it, so you don't deprive it's rightful owner of the money.

EternallyGrateful

I take your point on the ombudsman but I do stand by my view. If I was paying somebody as a result of the death of that person's spouse (a traumatic time with more important things to think about than small print) and I imposed certain conditions on the payment of that money then I would do everything in my power to ensure that those rules were adhered to. Simply I would make a note in my diary and issue a reminder or, in electronic terms, put a flag against that field in the database and have a reminder issued automatically.
Yes we have only heard one part of the story but if it is correct that the company database only raised a flag on the occasion of the 21st birthday then that it is an error/oversight in the systems/procedures and is negligent.

dunstonh

(a traumatic time with more important things to think about than small print)

Its not small print. Scheme booklets have it clearly described as what happens in the the "what happens if I die" section. Plus, the letter issued at the time would have explained how long its payable and what you need to do.

Yes we have only heard one part of the story but if it is correct that the company database only raised a flag on the occasion of the 21st birthday then that it is an error/oversight in the systems/procedures and is negligent.

Even if that is the case, the fact doesnt change that they made the OP aware at the start and it is the op that has forgotten and has money they are not entitled to.

The pensions advisory service make it quite clear what the law says and what is likely to happen.

EternallyGrateful

I'm not giving up on this one!
Let's say that this lady continued to accept the money even though she knew she was no longer entitled to it.
We know that many people try to defraud financial institutions:- false claims, spending money that accidentally finds it's way into their account, etc, etc.
These companies are looking after money on behalf of others and usually have systems in place to ensure that fraudulent acts are avoided.
This was a very, very easy one for them to avoid but, regardless of the circumstances, they didn't.

dunstonh

This was a very, very easy one for them to avoid but, regardless of the circumstances, they didn't.

How do you know that?