Pensions Mis-selling

polybear

Some years ago, my partner was sold a private pension plan when she should have been advised to join the company scheme instead. Can she claim for mis-selling (I was in a similar situation in the mid 90's) or has there been a "deadline" which has now passed? Thanks.

EdInvestor

She can still claim.

exil

If she had put money into the company scheme and it had been "Maxwelled" or the company had gone bust with the scheme in deficit......

Is it really mis-selling? Just a thought. Is a financial adviser meant to have a crystal ball?

polybear

It is mis-selling if the adviser (in this case it was the pension company rep.) failed to advise her that she would be better off joining the company scheme. I successfully did that with Barclays.

dunstonh

Is it an occupational pension or group personal pension? Was the adviser made aware that an employer run scheme existed? Did joining the personal pension preclude her from joining the occ scheme?

polybear

It's a personal pension; she could have joined a company final salary scheme but like many people didn't understand pensions etc. Plus a persuasive salesman wanting his commision.....
Not sure about being a member of two schemes in theory, but in practice she could never have afforded two anyway.

dunstonh

Plus a persuasive salesman wanting his commision.....

Dont count on that being the reason. The industry is paranoid about non-joiners and opt outs and many companies just will not take contributions from people who opt out/dont join.

Even if you go DIY and dont use an adviser, many companies have the question on the application asking if a company scheme is available to you join now and if you say yes, they will reject it.

polybear

Thanks for the reply; my OH joined the personal pension maybe 25 years ago now - she was made redundant from the company she was working for maybe 17 years later (i.e. she could have had 17 years of company scheme benefits, and could even have taken early retirement plus company pension when made redundant.

At the time the personal pension was started I don't think the pension industry was a careful as it is now?

dunstonh

That would make it pre-regulation. Anything went in those days as there were basically no rules or regulations.

The start date of the plan is going to be important. If it is pre-regulation, then it may not be worth complaining as only tied companies and banks will look at pre-regulation business.

polybear

We've been searching thru' the paperwork over the lunch break and it looks like it was started in 1982, direct with a "man from the Pru" at home. Any hope? Thanks.

dunstonh

1982 is pre regulation but Pru will consider complaints on products sold by their reps before regulation. However, they will not apply todays rules and regulations to your complaint. They will look at the 1982 standards and apply those. In 1982, there were basically no rules so it would be interesting to see how it would be treated.

Personal Pensions were not around in 1982 and this is almost certainly a retirement annuity contract. These often have valuable guarantees which could quite possibly pay more than the occ scheme. It may be worth checking what guaranteed annuity rates exist on the plan.

Also, if your partner has paid less in monthly payments into the Pru plan than they would have done with the occ scheme, then you should be prepared to be asked to make up the missing payments if the complaint is upheld and they try to put you back in the scheme.