Pension mis-selling calculations - how do they do it?

jewellery10

:question:
Can you please advise me what the rules are regarding the calculation of "compensation"for those individuals that were mis-sold private pensions in the1980's?

My late husband died suddenly in a Road TrafficAccident in Oct 2009.

Pearl Assurance mis-sold private pensions to my late husband. As part of the pensions mis-sellingreview they admitted liability and issued my husband a "guarantee"that he would be no worse off than if he had joined his OP scheme.

I have calculated the difference between the OP scheme benefits I now receive (he joined the scheme at a later date as per the FSA advice)and what I would have received had he joined the scheme at the startof his employment.

The offer from the Pearl is complicated by the fact that my late husband over-contributed his own contributions and also he paid more NI contributions than if he had been in his OPscheme.

Can you please advise me what rules/calculations the PEARL must use to work out what my late husband's over-contributions(self + NI) are now worth, and how they can be paid to me?

The Pearl says that these over contributions must not be used to fund the"compensation" but they are unwilling to put down in clear simple terms calculations to show what my husband would have contributed into the OP scheme versus what he paid into the Private schemes.

Any simple English flowcharts, diagrams and processflow documentation would be appreciated.

Regards

dunstonh

The calculation is usually software driven due to complications on different schemes and benefits.

xylophone

http://boards.thisismoney.co.uk/message/250530#250530

Did you ever consult an independent actuary?

jewellery10

I've tried to find the contact details for the person noted in the post above - even resorting to send hime a message on Facebook - no reply.

I have tried contacting various companies in the South West area - they are not interested in small fry (i.e. me as a person) only companies.

Therefore I am at a dead end.... perhaps I should obtain government funding for job training/creation, I would expect that there are a large number of people who were mis-sold pensions in the 1980's now coming up to their retirement age....

xylophone

http://uk.linkedin.com/pub/peter-chadwick/27/65a/696
He still seems to be about - try phoning the company?
http://www.192.com/atoz/business/belper-de56/sc/gpc-pensions-ltd/d6aec130bc13097b0737f823f45fab88097e9606/comp/

RetirementAngel

I am an actuary who specialised in doing these sorts of calculations. I most recently advised the Ombudsman on the assumptions that should be sued to do these calculations. If you want to send me a PM then I will look at your papers for free and tell you what I think needs to be done.

RetirementAngel

The point I think they are making is that they split their policy into 2:

1. the bit that relates only to money paid by your husband that he would have had to pay to his company scheme let's say this 2000

2. The excess - lets say this was 3000

They then split the value of the policy, let's say the total was 6000

The split that is unaffected by the guarantee is 3000/(3000+2000) x 6000 = 3600

For the balance 2400 they compare this with the value of the pension that the company scheme would have paid. If that is greater then they will make good the difference. The 3600 is then on top of this.

Hope that helps