Which legal firm to use for pension dispute

9jdm

Hi folk. I have a deferred pension and my company are refusing to pay my pension early. I am advised that I should go down the ombudsman route. So far I have used the internal dispute resolution process informal stage and the company is playing the can't afford card. This is despite the fact that they have granted others early payment. Before I go to the next more formal stage and ultimately approach the ombudsman I think I need to engage a solicitor to represent me. I really need a firm that have a track record of representing the individual. Most firms seem to specialise in advising trustees and the employer. Any recommendation would be appreciated and also any general thoughts on the issue. Many thanks.

HappyHarry

I have a deferred pension and my company are refusing to pay my pension early

What kind of pension do you have? Is it a defined benefit pension, or is it a Section 32 buyout plan?

Before you go to the cost of employing solicitors, it is important to understand the full circumstances.

Are you clear about why they are refusing to pay out early?

Have you read the scheme rules and seen what they say about taking a pension early?

I am advised that I should go down the ombudsman route.

Who has advised you of this?

Before I go to the next more formal stage and ultimately approach the ombudsman I think I need to engage a solicitor to represent me.

The pensions ombudsman service is intended to be used by individuals. Why do you feel the need to use a solicitor to represent you?

dunstonh

I have a deferred pension and my company are refusing to pay my pension early. I

Why are they refusing?
Typically, pension administrators refuse to do things they are not allowed to do. Either in law or the scheme rules. So, employing a solicitor when the scheme is acting correctly could be an expensive mistake.
Are they breaking rules or enforcing their legal rights?

. So far I have used the internal dispute resolution process informal stage and the company is playing the can't afford card. This is despite the fact that they have granted others early payment.

Were these other people taking the pension at the same time as you under similar circumstances?
If not, then that isnt much help to you as schemes are under increased funding pressures compared to just a few years ago. Let alone further back.

Have you used the free of charge process with the ombudsman?

vvvvvvvvvvvvvvvv

Are TPAS any good?

Go through your scheme's IDRP first

https://www.pensionsadvisoryservice.org.uk/

ermine

9jdm wrote: »

I think I need to engage a solicitor to represent me. I really need a firm that have a track record of representing the individual.

Presumably you will only launch legal action after you have exhausted the formal and then the ombudsman's complaints process? On what grounds are you saying they are remiss in not paying out early - in most DB pension schemes (assuming this is one) there is a piece in the Scheme booklet that says paying the pension early is at the Scheme Trustees' discretion. A DB pension is a defined promise to pay a defined amount from a defined age, if you want it paid before the defined age then you'll have to go with the discretion of the Trustees.

xylophone

https://forums.moneysavingexpert.com/discussion/comment/70309500#Comment_70309500

I have the option of receiving my company pension early. It is uk based but I am currently living abroad. (Eurozone).

What happened to the "option"?

Was it really an option or just your interpretation of the rules?

What exactly does your scheme booklet say about taking a pension before normal scheme retirement age?

9jdm

Thanks for all replies. The db scheme is in deficit but is recovering. Under the terms of the scheme the early retirement is granted at the company's discretion. It would appear to treat deferred and active members differently. Is this grounds for a case or am I fighting a lost cause. I will exhaust the free ombudsman route but wonder where to go after that. I obviously don't want to transfer out but may have no alternative.

Thrugelmir

9jdm wrote: »

Under the terms of the scheme the early retirement is granted at the company's discretion.

Then your case is going to flounder.

ermine

9jdm wrote: »

The db scheme is in deficit but is recovering. Under the terms of the scheme the early retirement is granted at the company's discretion. It would appear to treat deferred and active members differently. Is this grounds for a case or am I fighting a lost cause.

I can't see any grounds you may have, since the company's discretion does not imply they have to do the same for all. It may feel unfair, but it's within the terms of reference.

An example of why a company may prefer to give active members early retirement and bar deferred members is that they owe deferred members nothing other than the original promise of a pension at scheme NRA. An active member is on their payroll, and if the company is in trouble they may want to incentivise older employees to leave. Being able to draw their pensions early will help some of these employees do that. With limited funds, the company would be rational in favouring active members for early retirement to get them off their payroll, whereas letting deferred members draw early may deplete pension funds with no particular advantage for the company.

sandsy

Another option for you is to request a transfer out to another scheme, although if the value is over £30k, you would need to take regulated advice first. There's also the slight difficulty of finding a UK scheme which would accept the monies if you're non-resident. As you're in the Eurozone, another option would be to look at an options to a recognised overseas pension scheme.

But transferring out isn't suitable for everybody and there are no guarantees that an advisor would recommend it to you. Although having assets and liabilities in different countries can be one of the occasions when it can sometimes be justified. It's also an area where it's very easy to be scammed by rogue advisers so a lot of care is needed to check that everything is above board with the investments and charges etc.

System

Hi

Well you have not really explained anything very specific.

Compassionate grounds for instance where a family member needs constant attention may be acceptable.

Just early, and by how much, is difficult to assess and not unreasonable to reject.

So the route is IDRP, TPAS and TPR with the proviso that all this takes time and makes the early date a lot closer to the actual date.