Pension Valuation mistake

Davidk

After a little advice...

I worked for a company between 1988 and 1996, and contributed to a defined benefit pension. I also transferred an amount into this pension from a previous employment.

The pension administrators used to give annual pension statements while I worked these stopped when I left.

In 2014 I asked for a valuation/statement and it was valued at £16,700 per annum due to index linking. On the basis of this statement I made several financial decisions including a taking out a mortgage than I knew that I would be able to cover if made redundant etc.

After turning 55 this year I asked for another statement. The administrators now admit they made a mistake with the 2014 valuation and now have revalued it at around £12,000, this is due they say as the benefit from the transferred in part of the pension pot should not have been indexed as it is a fixed benefit. I believe this current evaluation is correct.

They have apologised but I wondered if I have any recourse for compensation because of the original mistake they made?

dunstonh

They have apologised but I wondered if I have any recourse for compensation because of the original mistake they made?

I had a case similar to this many years ago. The person retired and moved to a different area based on the valuation. However, it turned out the valuation was wrong due to an error. It ended up at the ombudsman who said that the error was unfortunate but you have no legal right to money because of an error. They awarded £400 for the inconvenience.

westv

£16,700 to £12,000 is a huge c.ock up.

soulsaver

westv wrote: »

£16,700 to £12,000 is a huge c.ock up.

And as such should have been easily detectable and verified by the recipient with the first quote. If it had been a typo with a £112000 would you rely on it?

Davidk

Hmm, I had no reason to suspect that quote from 2014 was incorrect. The last statement I'd had was from 1996 nearly 20 years previously. Both statements were consistent in saying that the majority of the benefits were index linked. I had no reason to disbelieve the 2014 quote. It is only now that they say a large part of the benefit is fixed and has been since it was transferred in back in 1990.

Davidk

Thanks for your reply. I understand I won't get anything that I'may not entitled to in way of pension benefits, just feeling a little hard done to at the moment.

Wookey

It's unfortunate but one thing I've found over the years is to wait till the money is in your hand before spending it and even then be sure it's yours to spend.