Closing of final salary pension scheme: Have I been had?

Paperweight

I left "company X" in 1996 having been in the FS scheme. It was administered by Norwich Union and they wrote to me offering 4 choices. One was to take a £3,250 pension from 65th birthday (non guaranteed element of £1,200 increasing at RPI or 5% p.a. between 1996 and 2022 when I am 65). The others were to take £7,500 in various ways. I opted for the pension and received a letter from them confirming that is what I would get.

5 years later the company closed the scheme down and it was transferred to Legal and General. I ignored any post I received on this as I already had my deal agreed (or so I thought). Having just been made redundant and approaching 55 I started looking at my pensions as part of deciding whether to retire early or not. I have found a letter from Legal and General saying that my pension is circa £500 a year!

I am confused as I have what looks to me like a clear agreement with Norwich Union to receive £3,250 (+ increases). Have i been ripped off or do I have a case to insist on the deal I agreed when I left?

Goldenyears

Is there a typo. Do you mean you left the company in 1996 ? In 1976 you were 19 years old ! £500 pa sounds reasonable for a year? of service.

Paperweight

Sorry. Amended to 1996.

bobthedambuilder

Have you kept the correspondence from L&G that you "ignored"? If so, you need to go through it with a fine toothcomb. I would think it unusual (other posters may well say it is impossible), but maybe one of these letters was offering a change from the Final Salary scheme to a money purchase scheme, with the change as the default if you did not reply stating your choice.

If you can't check this out because the correspondence no longer exists, you need to write to L&G asking for clarification as you consider that you are entitled to a final salary pension of £3250 + increases due to your membership of Norwich Union scheme ref ... which was transferred to L&G in (date).