Compensation for opting out of SERPS

defender_of_the_weak

The fine was not for the transgressions of one company or adviser it was for the mis-handling of complaints. The point in question is that centrally there is an apparent failure to treat customers fairly. As for same company, same network different name. How many times have Dunbar changed their name 4/5? Does this mean their practices are more highly regarded. If you know that you have an offender in your region why do the group make representations to the network and help protect the public from what you appear to be suggesting is bad advice.

The original thread was about opting out of serps and being contacted by the likes of Morgan Green, on those issues I think we are fairly much agreed. On the practices of your networks complaint handling I don't think we will ever agree

eleanormc

I was contacted by one of these companies wanting money up front and following the advice on this forum sent a copy of Martin Lewis's recommended letter to my pension company. They passed it on to the financial advisors who had given me the advice to opt out in 1989. I opted out from 1989 until 1995 and being in need of the cash in 2006 I opted to take the pension accrued as I was age 58 then. I am now in receipt of my state pension. The reply I received from the financial advisors claimed that compensation wasn't due because they had written to advise me that I could complain about the pension advice I received and I didn't - but I have no record of receiving that letter as we had moved by then. Also they stated that an amount of £3655.25 was paid in during those years which grew to £11121.43 and because I took that amount and didn't complain then and now can't prove that any actual loss exists, they believe there is no foundation for a complaint. I have thought of asking for copies of the letters they say they sent to me but I don't know how to provide evidence of any potential loss based on those figures. Perhaps as i have taken the pension I don't have a leg to stand on and should just accept it! At least I didn't pay anyone any money to investigate for me! Thank you to this forum!

dunstonh

Perhaps as i have taken the pension I don't have a leg to stand on and should just accept it!

Thats your biggest problem. Had you remained contracted in you would not have got the pension to age 65 and would not have got 25% tax free cash.

So, in your case you are better off.

Also, the securities and investments board (SIB) reported in 1996 that everyone that contracted out upto 1996 was financially better off. You contracted back in during 1996.

reply I received from the financial advisors claimed that compensation wasn't due because they had written to advise me that I could complain about the pension advice I received and I didn't - but I have no record of receiving that letter as we had moved by then.

That actually applies to the original pension review for pre 1993 sales and focused on those that opted out of occupational schemes. Its unrelated to what you are on about. They may have misunderstood what you were complaining about. However, you have benefitted from contracting out so there is no point worrying about it.

It was always likely not to be classed as a mis-sale anyway as only 1% of cases fall into the potential of mis-sale according to the FSA when they did their review. If complaints were based using todays standards then 99% would be mis-sales under todays rules. However, they are measured by what rules were in place at the time.

jamesd

eleanormc wrote: »

I opted out from 1989 until 1995 and being in need of the cash in 2006 I opted to take the pension accrued as I was age 58 then. ... they stated that an amount of £3655.25 was paid in during those years which grew to £11121.43

Lets assume that all of that 3655.25 was paid in in 1995 and that it grew until you took the cash in 2006. That would be an investment growth rate or 10.6% a year, which is eminently reasonable. It's actually a bit lower because it was paid in over a longer period but it still looks entirely decent as a growth rate, enough to have gained from better investment returns, one of the possible advantages of contracting out.

Then you took the money before state retirement age, one of the other possible advantages of contracting out.

So it seems that you've done decently from both the investment and the flexibility to take the money early and are unlikely to have lost out at all. You seem to be one of the winners of contracting out.