Allied Dunbar Pension

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Hi everyone,
In the late '80's I briefly had a personal retirement plan with Allied Dunbar which I stopped contributing to in 1990 when I stopped my self employment to return to education for three years. I recently dug out the paperwork for this thinking that it might be worth something after 27 years. On contacting Zurich (who took over Allied Dunbar some years back) I was very disappointingly informed that although the total amount that had been paid in back then was £1087, the plan now had no current value as this had been swallowed up by management fees, etc. As I know of somebody in a similar position who had about £500 in a pension with them from around the same time, and who passed away recently with the pension being worth over £30K (having also not paid any contributions over a similar timespan), I am trying to find out if what Zurich are telling me sounds right - or does anyone out there smell a rat?!!
Has anybody had any similar experience or can shed any light on why this might be?

Cheers, Barrie

dunstonh

I am trying to find out if what Zurich are telling me sounds right - or does anyone out there smell a rat?!!

Sounds about right for the era.

Has anybody had any similar experience or can shed any light on why this might be?

Back then, they would collect the sales charge from the premiums paid in the early years. Typically 2-4 years. They would buy units in a type that was meant to pay the charges. After that period they would switch to a different type of unit which the charges were not taken from. So, if you stopped in the early years, you would often end up with no value.

As I know of somebody in a similar position who had about £500 in a pension with them from around the same time, and who passed away recently with the pension being worth over £30K (having also not paid any contributions over a similar timespan)

£500 doesnt turn into £30,000. Did they contract out of SERPS at the same time?

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Thanks for your reply dunstonh.
Disappointing for me but typical of my luck! Is it possible that there may be PPI with this?
Regarding the other case, it is my wife's ex. She knew about the initial amount invested in the pension but was under the impression that he no longer contributed after they divorced - maybe he did. It was certainly a big surprise for his children because nobody realised he had any significant assets. Just thought with the two cases being similar that there might be some return there for me.

dunstonh

Is it possible that there may be PPI with this?

No. Pensions cant have PPI.

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OK, thanks again

ffacoffipawb

dunstonh wrote: »

No. Pensions cant have PPI.

Might have had waiver of contribution benefit though.

dunstonh

ffacoffipawb wrote: »

Might have had waiver of contribution benefit though.

That is not PPI though and not comparable (Not issued by general insurance companies, doesnt cover unemployment, fully underwritten at point of sale and no eligibility issues. Plus, regulator considered it best advice to have it). Equally, it could have had life assurance. Pension term assurance existed back then.

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There was a Personal Life Plan with it, could there possibly be a PPI claim on this?

dunstonh

Badge wrote: »

There was a Personal Life Plan with it, could there possibly be a PPI claim on this?

No. Life assurance back then didnt have PPI on it either (and only multi-segment plans can and they are a more modern option compared to the AD plans that were long out of date before they closed down.

I don't believe Allied Dunbar would have had a PPI policy as they were a life company and I don't believe they operated a general insurance company prior to being bought by Zurich. Indeed, I just checked the FOS decisions and not one case matching Allied Dunbar and PPI.

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Ok, well that's that then! Lol. Thanks for all your help.