We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
We're aware that some users are experiencing technical issues which the team are working to resolve. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Can you make a PPI claim for "Contribution Protection Benefit" on a pension scheme?
Options
missmass
Posts: 2 Newbie
Apologies if a similar question has been asked already, I have looked but couldn't find anything.
My dad (62 yo) has had a pension with Standard Life since he started work at his company over 40 years ago. His pension is administered (I think that's the right term) by a company of financial advisors called The Premier Partnership.
He recently discovered that he's been paying CPB (Contribution Protection Benefit) to The Premier Partnership since he took out his pension. He asked PP to clarify what CPB was, and they told him that it's a scheme to protect him if he is off sick for longer than 26 weeks (ie they'll make his pension contributions while he's off). His pension contributions are already covered by his employer for sickness absence over 10 weeks, so this CPB does not offer him any additional benefits.
His pension statements from Standard Life only record the investments in his pension scheme, they do not show the fees he's been paying to PP for this CPB. He just has one small note on the first piece of paperwork saying that the initial fee would be £10.31. He has never received any statements from PP telling him how much he has paid, nor any notifications as to whether they payments would increase/decrease; they just take the money from his salary, remove the CPB fee, then invest the remainder in his pension scheme with SL.
He has now cancelled the CPB but would like to know whether this scheme is similar to PPI and whether he is entitled to claim the payments back.
In short, he's been making payment that he wasn't aware of, he has no record of how much money he's paid, and the "benefit" he would have received from the CPB had he ever needed to claim would have been redundant given that he is already covered by his employer.
Any help/advice gratefully received.
My dad (62 yo) has had a pension with Standard Life since he started work at his company over 40 years ago. His pension is administered (I think that's the right term) by a company of financial advisors called The Premier Partnership.
He recently discovered that he's been paying CPB (Contribution Protection Benefit) to The Premier Partnership since he took out his pension. He asked PP to clarify what CPB was, and they told him that it's a scheme to protect him if he is off sick for longer than 26 weeks (ie they'll make his pension contributions while he's off). His pension contributions are already covered by his employer for sickness absence over 10 weeks, so this CPB does not offer him any additional benefits.
His pension statements from Standard Life only record the investments in his pension scheme, they do not show the fees he's been paying to PP for this CPB. He just has one small note on the first piece of paperwork saying that the initial fee would be £10.31. He has never received any statements from PP telling him how much he has paid, nor any notifications as to whether they payments would increase/decrease; they just take the money from his salary, remove the CPB fee, then invest the remainder in his pension scheme with SL.
He has now cancelled the CPB but would like to know whether this scheme is similar to PPI and whether he is entitled to claim the payments back.
In short, he's been making payment that he wasn't aware of, he has no record of how much money he's paid, and the "benefit" he would have received from the CPB had he ever needed to claim would have been redundant given that he is already covered by his employer.
Any help/advice gratefully received.
0
Comments
-
You can complain of mis-sale of any insurance, but he has no "entitlement" to refund unless his complaint is upheld, of course.He has now cancelled the CPB but would like to know whether this scheme is similar to PPI and whether he is entitled to claim the payments back.In short, he's been making payment that he wasn't aware of, he has no record of how much money he's paid, and the "benefit" he would have received from the CPB had he ever needed to claim would have been redundant given that he is already covered by his employer.
Go here for the process:
http://www.moneysavingexpert.com/reclaim/ppi-loan-insurance#step2
and ignore that it's primarily for Bank loans. The complaint process is exactly the same for concerns about any financial product. However, you don't have a case.0 -
Can you make a PPI claim for "Contribution Protection Benefit" on a pension scheme?
No. It is not PPI. So putting in a complaint about PPI when the product doesnt have PPI is pointless. However, you can complain about whatever you like.but would like to know whether this scheme is similar to PPI
its not. PPI is not underwritten. WOP is underwritten. PPI is issued by general insurance companies and is short term insurance. WOP is issued by life assurance companies and is long term insurance. WOP is not dependent on work benefits. PPI is.In short, he's been making payment that he wasn't aware of
Unlike PPI, WOP requires full medical disclosure. So, he would have completed a medical questionnaire, GP details and obviously signed all that. So, that does not fit with him saying he was not aware of it. Forgot maybe but that is not 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.0 -
But isn't there some significant overlap of cover here, Dunston? If his employer already provides for his pension contributions if he is long term sick isn't he already covered? Or does the Contribution Protection Benefit also cover in case of unemployment etc which the OP neglected to mention?WOP is not dependent on work benefits.0 -
WOP pays out after 26 weeks and will continue to pay the pension until retirement age. Is it likely his (by then ex) employer would pay his pension for the rest of his working life? Never met an employer who will.
Waiver of premium is not PPI so has no unemployment protection.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.0 -
-
(You probably shouldn't have cancelled the cover either!)
IFAs are required to recommend WOP as default. It is considered bad advice not to recommend it. We can eliminate it but we have to document why it is eliminated. Its been like that since at least the early 90s.
Older Waiver plans qualified for tax relief on the premiums. That stopped on new business arranged post 2001 but those that had it prior to that got to keep the tax relief.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.0 -
No. It is not PPI. So putting in a complaint about PPI when the product doesnt have PPI is pointless. However, you can complain about whatever you like.
Okay, what I meant by that question was: is CPB the same as PPI? The point of that question was to find out if I *could* put in a PPI claim for this.PPI is not underwritten. WOP is underwritten. PPI is issued by general insurance companies and is short term insurance. WOP is issued by life assurance companies and is long term insurance. WOP is not dependent on work benefits. PPI is.
How do I know this is WOP?Unlike PPI, WOP requires full medical disclosure. So, he would have completed a medical questionnaire, GP details and obviously signed all that. So, that does not fit with him saying he was not aware of it. Forgot maybe but that is not a mis-sale.
Wouldn't he have had to complete a medical questionnaire for his pension scheme? Would there have been a separate one for CPB?0 -
its not ppi0
-
Okay, what I meant by that question was: is CPB the same as PPI?
No its not.How do I know this is WOP?
Because pensions only have two addons. Life assurance (only prior to 2001 bar small window that allowed loophole for a limited period after that was quickly closed) and waiver of premium (sometimes called waiver of contribution or pension contribution benefit or similar).Wouldn't he have had to complete a medical questionnaire for his pension scheme? Would there have been a separate one for CPB?
There is no medical questions for pensions. Just waiver of premium and term assurance.
PPI is not possible on pensions.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.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 350.7K Banking & Borrowing
- 253K Reduce Debt & Boost Income
- 453.4K Spending & Discounts
- 243.7K Work, Benefits & Business
- 598.4K Mortgages, Homes & Bills
- 176.8K Life & Family
- 256.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards