Aegon Personal Pension Transfer nightmare

alistairw36

Does anyone know if a personal pension valuation can be changed once it is transferred to another provider?

Aegon are asking me for a refund of over £14,000, due to what they claim is an overpayment on transfer out. The explanatiion is their miscalcuation of tax relief applied. Although no evidence wahtsoever has been provided. This would be bad enough, but the only reason I transferred is an ongoing nightmare over Aegons misleading and innacurate calculations, that has cost me thousands.

Just over a Year ago I transferred my Aegon personal pension to Hargreaves Lansdowne. The decision followed a series of problems relating to innacurate statements and slow response to requests to move funds, funds incorrectly kept in cash and lack of communication . The most serious issue is that the pension was sold to myself and 2 work colleagues on the understanding that a loyalty bonus of 6% of fund value would be applied, after 10 years. 10 years passed and a tiny amount was applied, with no logical relation to 6%.

Via our independent finaincial advisor a complaint was raised and ignored by Aegon for nearly a year. Following which differing, confused and opaque explanations of bonus has been provided. This problem is now (incredibly slowly) being pursued by the pensions ombusman.

I had had enough, totally losing any trust in Aegon and its competence, I accepted a transfer valuation, moving my pension to Hargreves Landsdowne.

About a month ago, HL, informed me that Aegon had requested a refund of over £14,000. Apparently because they had miscalculated and applied tax relief to employer contributions. I told HL not to make any refund.

At least Aegon admit that they cannot be trusted to add up, but i'm not willing to let them rob me!

Aegon has now written to me giving me 13 days notice before they say that their legal department will begin proceedings.

Any advice? - Dealing with Aegon is a total nightmare:j:mad::mad::mad::mad:

xylophone

Just over a Year ago I transferred my Aegon personal pension to Hargreaves Lansdowne.

About a month ago, HL, informed me that Aegon had requested a refund of over £14,000. Apparently because they had miscalculated and applied tax relief to employer contributions.

You don't have the right to benefit from a mistake.

The money is actually due to HMRC?

If the pension had still been with Aegon, presumably they would have arranged for the tax relief claimed in error to be returned to HMRC.

Aegon have advised HL that money is due to HMRC and HL have advised you.

It seems to me that the money will need to be repaid.

https://www.ftadviser.com/pensions/2018/04/04/salary-sacrifice-errors-could-trigger-pension-clawback/

Thrugelmir

alistairw36 wrote: »

Aegon has now written to me giving me 13 days notice before they say that their legal department will begin proceedings.

Do do want to incur sizable additional costs?

dunstonh

At least Aegon admit that they cannot be trusted to add up, but i'm not willing to let them rob me!

On the other hand, you are attempting to rob them.

Aegon has now written to me giving me 13 days notice before they say that their legal department will begin proceedings.

Any advice? - Dealing with Aegon is a total nightmare

You have no legal right to retain the money in the event of a mistake. So, the natural progression on this is that they will call in a debt collection company and damage your credit record in the process. They will also be within their rights to add the costs of the collection to the debt. Except that cost will not be collected via the pension but from you directly.

squirrelpie

I would generally agree with the replies, but I do think that alistairw36 has a reasonable expectation of an explanation of exactly what mistake has been made, rather than just a 'pay us £14,000' demand. It should be auditable and perhaps such a mistake should be reported to the regulator.

xylophone

has a reasonable expectation of an explanation of exactly what mistake has been made,

He has been told that Aegon claimed tax relief on employer contributions - since they've identified the error they should be able to provide chapter and verse.

dunstonh

squirrelpie wrote: »

I would generally agree with the replies, but I do think that alistairw36 has a reasonable expectation of an explanation of exactly what mistake has been made, rather than just a 'pay us £14,000' demand. It should be auditable and perhaps such a mistake should be reported to the regulator.

The regulator wont be interested unless it is a widespread problem and their fault.

You would expect a clarification and breakdown and I suspect one has been given.

alistairw36

Thanks for the posters.

I'll clearly have to ask for a detailed explanation of the apparent miscalculation. My only hope is that Aegon are as slow in dealing with this as they are proving in dealing with the complaint that led me to transfer out. I will have drawn what's left of my pension and died! Somehow I doubt it.


I know these are separate issues but what is so galling about this is that 2 years on Aegon has still provided no proper explanation of non-application of bonus, not responded to any of my and my IFA's complaints. I have lost over £30k due to being "out of market" and other issues in Aegon's incompetent handling of my pension. I now face a further £14k reduction what I was led to believe was mine.

Being honest, transparent, responsive and above all able to add up is the minimum a consumer should expect from a pension provider.

My experience of Aegon is that none of the above apply. I have done "the right thing" and invested in pension for over 30 years now. When I lose out due to Aegon's incompetence - I lose, Aegon's incompetence continues to plague me even after I get my hard earned cash away form them. I'm being absolutely shafted. What an advert for pensions?

atush

You should get redress fro the money you lost due to their mistakes thru the ombudsman. That is what they are for.

But that doesnt entitle you to this money. Pay it back. Or face being worse off when it is taken off you and costs applied.

alistairw36

Thanks for the advice.

I'd love to get redress via the ombudsman. 2 years after complaining, both myself and my IFA continually chasing absolutely zero progress.

...and guess what arrived from Aegon today? A new letter, apologising for an error in their previous demand. Aegon, the most useless, incompetent pension firm on earth now want another £400 claiming another miscalculation!

Still no detail of any calculation provided, the same deadline for payment as previously.

How in God's name can anybody trust a pension provider like this? Aegon is a disgrace. Avoid, avoid avoid.

simple_expat

Do you have any old statements showing the contributions that were paid in and the tax relief they claimed? The annual statement normally showed this. Then you may be able to work out the calculation error yourself.

Good luck