contracted out claim against pension provider

defender_of_the_weak

Dunstons right, name and shame the compan, cold calling is specifically banned for authorised companies and if they are not authorised they are breaking the law.

We have seen a lot of contracting out cases and those were a formal complaint has been raised around a third are showing as mis-sales. However only about 50% of the upheld cases show a financial loss to be redressed so broad brush about on in six cases lead to a financial gain of some sort.

The differing elements of contracting, such as age, date of joining, salary NI rebate, fund choice, charging structure, mean that no-one can say this was definetely good or bad advice without full investigation and actuarial comparison.

Cold calling normally means up front fees and if i turn my own figures on their head 5 out of 6 of these fees are for nothing. The hard part is then getting the fee back. As anewbie on the site, I would also make it clear I run a financial claim company so have a reasonable amount of background/knowledge of these types of cases IMHO

dunstonh

However only about 50% of the upheld cases show a financial loss

Thats interesting as that fits with the current views that its around one half of people contracted out being worse off financially at this time. Much improved over the low point of the crash when everyone was worse off and a few years about when it was about 2/3rds. It would be nice to see it get closer to the 1996 figure of 100% better off but I doubt that will ever happen thanks to Labour reducing the contracting out rebate and many individuals being in obsolete investment funds.

cmj7, your best bet is to get the pension reviewed by an IFA. Contracting out is not a mis-sale. Its how it is described and advised to you. There are pros and cons of contracting in and contracting out so you can only really make a decision on what you feel is important to you. Nobody can say which option will be financially best as both options carry risk and variables. However, one of the most important things with contracting out is making sure that the investment funds you have are suitable and the charges on the pension are in line with modern alternatives.

If you buy a car, you get it serviced. As the car gets older, it becomes increasingly obsolete by modern standards. Pensions have been much the same with modern pensions "generally" being cheaper and offering better investment options than old ones. If you havent "serviced" the pension since you bought it then that could be costing you a lot of money. Get an IFA to review it. You can also discuss the decision to contract out with them and see what their view is.

cmj7

Many thanks for the responses dunstonh and defender, I never hand over money upfront anyway, regardless of the possible upside. I am going to continue talking to them just to get further information.

FYI the company name is: Tekram Goldberg Limited, Reg.No 5656241.

Just so that I am clear, as I recall the caller advised (I will ask for this in writing from them) that the failure issue was to do with the pension company failing to advise me on an ongoing basis (year on year - as they seem to be doing now) whether I should contract in or out, and it is this failure that brings about the claim.

defender_of_the_weak

They are not regulated and are operating illegally. Try googling the name and see if you can find anything positive about them, or try searching on here.

Im off to the regulators website

dunstonh

ah ha. Tekram Goldberg are the ones i had forgotten the name of.

As an IFA, i get fustrated by the lower quality or bad apples in the advice industry. I am sure that DOTW gets fustrated by companies like morgan green or tekram goldberg who give claims companies are bad reputation.

Just so that I am clear, as I recall the caller advised (I will ask for this in writing from them) that the failure issue was to do with the pension company failing to advise me on an ongoing basis (year on year - as they seem to be doing now) whether I should contract in or out, and it is this failure that brings about the claim.

I dont see that as being a good enough reason. There was no requirement for them to review it on an annual basis unless that was part of their terms of business. Very few are.

It is true that they never used to write to you every year with the choice but the choice did exist if you went to them or your adviser did it for you.

One of the biggest issues with TG or MG is that they tell anyone who has contracted out that they have been mis-sold. That is not correct. There are some benefits of contracting out (such as earlier retirement commecement and tax free lump sum) and you could be could have chosen that reason. Also, there is still the potential to come in with a higher figure. Research has suggested that about half of those contracted out are better off. DOTW complaint stats suggest about half as well.

You are perhaps better getting your pension reviewed to see what you think of the pros and cons. It could be that you were mis-sold. It could be that the benefits of contracting out appeal to you. If you think after a review that you were mis-sold you can still complain. You dont need a complaints company and many IFAs will put the complaint in for you if they feel you have been hard done by.