AVIVA pension calculation error!!! What can I do?

Gibdan

I am 65 and my official retirement age is 66.  My pension plan matured on my 65th birthday which was 1/2/2020.  I had all documentation sent through to me from AVIVA, mid December 2019, advising me that my Transfer 32 plan with a GMP pension would be X amount per month and giving me paperwork to complete, ie. 1) a form to complete to claim the pension, 2) an Open Market option, etc.  The fund was not large enough to give me a cash lump sum  - I could have done with that right now as I am looking after my wife who has been seriously ill and I haven't been able to work since early June 2019.   Anyway, I decided based on the 'quote' they sent in December 2019 that I would take the monthly pension which would be quite a help at the moment.   Promptly completed the enclosed form and together with proof of ID sent it off to AVIVA mid January.  I called AVIVA to check they received everything.  They verified they had but that it would take about a month to process so instead of receiving my first payment on my 65th birthday, 1/2/20, I would get two payments on 2nd March 2020.  I said fair enough and they said they would confirm by post that everything had been processed and the monies would be in my bank account.  Time went on and I heard nothing.  All last week and yesterday, 2/3/20, I eagerly waited for the post to arrive.  NOTHING!!!  Rang them yesterday to be told 'we made an error in calculating your pension.  It’s being looked into by our Technical team.  I can't tell you how long it will take to sort but we will keep you informed.  WOW - Just this minute had a call from AVIVA Complaints Dept. who apologised profusely and who assured me 'it isn't good enough' and 'we will look into providing some sort of compensation'.  I am furious as I was expecting quite a good sum of money in my bank account yesterday and now I have nothing and no time scale to know when I will get anything.  If the recalculated pension is CONSIDERABLY less it may not be worth taking it yet.   I had planned my whole future based on the figures they gave me.  We are older people living in rented accommodation (yes, business went down the pan late in life!).  If they knew they had made an error why didn't they write/email me in the interim to at least let me know that I wouldn't be gettting any monies on 2/3/20!!!   What on earth can I do?

Clive_Woody

Sorry to hear this. I can't offer much constructive help, but next time you speak with their complaints department ask them to confirm their time frame for them to deal with their mistake as this has left you without the money they told you that you would be getting. If they won't ,ask them what the next steps are for you to escalate your complaint.

I don't know if you do "Social Media" - but I've found posting messages on Facebook, Twitter or other places gets an expedited response as they do now want their dirty laundry aired in public. 

Andrew31

Tricky one, when dealing with such a huge company the wheels turn slow and they dont really care about you . 
I would personally shame them all over social media, normally gets pretty good results.
Aviva are one of the worst for sure. 

xylophone

I am 65 and my official retirement age is 66.  My pension plan matured on my 65th birthday which was 1/2/2020.  

Do you mean that your state pension age is 66? Have you obtained a state pension statement?

https://www.gov.uk/check-state-pension

You have a S32 with GMP - this indicates that at some point you transferred out of a company pension scheme. The delay is likely to be with the calculation of the GMP.

https://www.financialadvice.net/s32_buy_out_plan/zone/1288

Aviva has already acknowledged that the standard of service is not acceptable and that an offer of compensation will be investigated.

You may like to telephone TPAS for further assistance with any complaint. 

https://www.pensionsadvisoryservice.org.uk/pension-problems/making-a-complaint

Gibdan

Hi Xylophone.  My state pension age is now 66 but that is irrelevant in this situation I guess and I should not have bothered to mention it.  However, my Transfer32 plan matured on my 65th birthday, 1/2/20.  Yes i did back in the mid 80's transfer out of a comapny pension scheme.  However, they've had months to calculate the GMP as I made contact with AVIVA back in September 2019.  I think I will wait to see what my complaint produces in terms of compensation and my recalculated pension!  However, i will contact them again tomorrow to get some sort of time frame as I don't think it is acceptable for them to just say that they  can't give a timeframe!!!  If the response re. compensation is not to my liking I will then launch a 'social media onslaught' as I am still seething!!!  In the meantime, I will definitely contact the TPAS as you suggest.  Manny thanks for your thoughts

xylophone

Yes i did back in the mid 80's transfer out of a comapny pension scheme.  

No post 88/post May 1990 GMP then? 

In that case, perhaps the problem is not with the GMP.

Do you know how the GMP has been revaluing since you took out the S32? That is to say, is Aviva using Fixed Rate or Full Rate revaluation?

https://www.barnett-waddingham.co.uk/comment-insight/blog/revaluation-for-early-leavers/

Gibdan

Xylophone.  I transferred out of company pension scheme in 1987.  I guess I need to establish whether Aviva is using Fixed Rate or Full Rate revaluation because I don't have any idea.  The problem I have is that the paperwork (along with other important paperwork) went missing 10 years ago when we had to move out of our house (we had a business go down).   Are there any  other questions I should ask?  I would be most grateful for any further advice you can give me.   To be honest I'm still reeling from what's transpired this week and I have my wife, who has been very poorly, who I am looking after!!!   Could have really done without this.  The last 10 years have been a real struggle in all directions!!!  Many thanks in advance.

ffacoffipawb

Very likely to be fixed rate. I have never seen Section 32 Buyouts use full revaluation as that gives an unknown GMP liability. Not saying that there aren't any, but I haven't seen any.

xylophone

The problem I have is that the paperwork (along with other important paperwork) went missing 10 years ago 

This is awkward for you because I am assuming that when you transferred into the S32, you did have a statement from the previous provider which showed your GMP at date of leaving and any excess over GMP.

Your policy document from Aviva  (CU back then?) would have given information on revaluation?

The link to S32 in my post above  explains what may happen in the event of a shortfall in investment returns (basically using any excess to cover the revalued GMP which must  be provided) and the link to Barnett Waddingham explains Fixed and Full Rate.

You could check but when pre 1988 GMP comes into payment, the provider does not have to grant any increases/index linking going forward - have you been told that the pension  if all GMP (or the GMP element) will not increase?

xylophone

And have you checked your state pension position to help with planning? And you might like to check for your wife if she is too poorly at present to do it for herself?

Gibdan

Hi Xylophone.  My wife is already in receipt of her state pension.  My state pension is fine I did check recently last September.  The GMP will NOT increase.   Its a joke - i remember the original forecast was that the total fund value would be £1,000,000 at maturity!!!   Its a with-profits policy.     Tomorrow I will have a good look at the links you supplied above.  Many thanks