NHS pension but no cost of living increase

sazzy14

My husband took his NHS pension February 2013 at 60 years. We were told that we had used up 87.64% of his lifetime allowance. The pension is meant to be fully index linked to the CPI, however we have never received any cost of living increases, we get exactly the same now as we did the first day we received it. We phoned Paymaster who has told us that they cannot give us an increase because our Lifetime Allowance is above 83%. Apparently they have to refer everyone with a high lifetime allowance back to Fleetwood the Pension administrators. We have tried for over a week to get Fleetwood to say why this is but cannot get them to ring us back. We have also written but no acknowledgment.
We were told that the pension pot was only tested against the lifetime allowance when you take the pension. I have read the HMRC website and see that it could be tested again if your pension increase is above RPI under what is called BCE3 but ours isn't. Has anyone come across this. We have never been warned of this and they didnt even write to say that we weren't being given an increase which is due every April. Nothing last April, nothing this April and no explaination.

xylophone

http://theexpert.axa.co.uk/images/PDFs/PTB%2038%20final%20-%20BCE%203%20Scheme%20Pension%20Increase.pdf

The above throws some light on BCE3.

http://www.nhsbsa.nhs.uk/Documents/Pensions/BookletR(2).pdf

Does part 4 of the above throw any light?


http://www.nhsbsa.nhs.uk/4471.aspx For your query?

sazzy14

I have read the pension booklet and nothing applies that would freeze our increases. Retired at age of 60 years.

I have read bce3 and can see nothing that applies to us. Nhs pensions increase in line with CPI in September every year and are paid in April. Last September CPI was 2.2%. This is both lower than a 5%increase and lower than RPI therefore no crystallization should apply as I read it.

It's really frustrating you pay into a pension for 40 years and then find you are not getting the index linked pension you expected. It obviously makes a huge difference.

We weren't even informed that we were getting no increase, no letters nothing, we just noticed that it hadn't gone up at all. How can they do this surely it's a breach of contract, we were never warned and may have made different decisions regarding how and when we took our pension if we had.

Nobody knows anything about it so it obviously wasn't discussed, both our financial adviser and the pension advisory service don't understand why. It's so frustrating when you can't get an explanation.

kidmugsy

I suggest that you write them a letter and post it Recorded Delivery. It should end by saying that if they fail to acknowledge receipt within (say) a fortnight, you'll raise the matter with your MP.

sazzy14

I have sent them a letter but no reply. Their service is dreadful if you ring they won't put you through to anyone, they say they will ring back but they don't. I even know the person I want to speak to but you can't get put through.

We feel really quite stressed as we have had no explaination and we know other people have had the same rules applied to them so its not just a mistake. We dont know under what rules they are applying this freeze nor whether it will last forever. They didn't even tell us that they had applied a freeze they just waited for us to notice. I have paid a fortune into this pension over the years and now am not getting what I paid for.

The Pension Advisory Service said they will take it on when I get a reply from them but I have to wait for a response. How can they do something like this and nobody knows about it?

sazzy14

Thank you maybe I will send another recorded and add the threat.

kidmugsy

sazzy14 wrote: »

Thank you maybe I will send another recorded and add the threat.

When I was being messed about by the NHS, a call from the MP did the trick.

PennyForThem_2

This may seem a bit extreme but have you considered a Freedom of Information Request? It won't help you the individual, but it will reveal the policy and procedures and guidelines behind why you are not receiving what you think should happen.

https://www.whatdotheyknow.com/

The above site makes it public but you, as an individual can put in a request as long as it is in writing (email is fine). They should have an FOI requests page (contacts?) on the NHS pension site.

They have 20 working days to provide an answer. If you are not satisfied then you can go to their internal complaints. If still not satisfied appeal to Information Commisioner.

It cannot be about you - it has to be about policy, decision making, stats. It is backed by law - FOI Act 2000.

If you do this then it will give you the tools to appeal as you should have the policy etc to base that appeal.

I gave the site because then it is public but you don't need to use that site. Just an email quoting FOI Request and giving an email address to reply is sufficient. If they don't reply I would go straight to IC.

http://ico.org.uk/

I am making a huge assumption that NHS pensions is a public authority - I cannot think why it would not be.

xylophone

Just to be sure (I don't want to labour the point), you have tried the shiny new enquiry service- link in my post above)?

If not, it might be worth a try? If you have no joy, then a special delivery letter, marked for the attention of the administrator in question

I even know the person I want to speak to but you can't get put through.

should be sent. You should give details of previous communications and advise that if, within three weeks of the date of your letter, you have not received a satisfactory explanation citing precisely which regulations/ scheme rules apply, you will be involving your MP with a view to reference to the Pensions Ombudsman.

sazzy14

Sorry yes I did try their ASK haven't had a reply though

sazzy14

The ASK site has lots of question but none I could find that related to my query. There is a link to the regulations but I couldn't find what I needed so I did what they say and sent an email. I have just noticed that they TRY and reply within 15 days! Not much of a service but typical I suspect. Fifteen days of not knowing whether our pension will ever increase is very stressful, I do think they should have had an obligation to explain why they didn't increase our pension not just that it was because we had used up over 83% of our lifetime allowance, so what has that got to do with a cost of living increase,we haven't even breached it and wouldn't with a 2.2% rise!