Pension fund shortfall

bobby-spewbag

Hello I was sent a notification,that the Norwich Union ,10 years ago had incorrectlly allocated me units in a catergory of investment that ,I had not authorized.
They now want me to repay ,£2500,for there mistake,or they will remove this amount from my pension fund.if I do not give my permission
As this was there error ,and they take management fee,s each year ,should I tell them to get ,on there bike.
Financial brokers set this up,and the Norwich Union,took 10 years to identify this error

Any observations

dunstonh

Had their error been the other way round and they owed you £2500 would you take the same view? NU shouldnt pay you what you are due?

If your application clearly stated a certain fund and you were put in the wrong fund then usually you will be given a choice of keeping the investment as it was or correcting it and making a price alteration. So, although that sounds like what you are describing, the resolution they are asking for doesnt seem right.

If it was a unit price miscalculation or the wrong number of units were allocated, then that would sound more like it as they wouldnt give a choice on these two things but ask for repayment (or pay what you are owed if it goes the other way).

Technically, it makes sense for them to take the £2500 from the pension as that is more tax efficient than you paying it.

bobby-spewbag

My application clearly stated a certain fund and I was put in the wrong fund ,anf although that fund has performrd well ,Why has it taken 10 years to identify,this mistake