Teachers Free standing contributions

gtfmg

Around 30 years ago I enrolled in a free standing additional pension via the NUT rep. I paid £50 a month and I was sold it on the basis that I would get a pension boost of up to £3k pa.  I retired 12 years ago but what I get is about £500 a year, which is less than i was putting in a year.  The pension is now administrated by LV.
Can I make a claim for being mis sold?

Dazed_and_C0nfused

So you paid £50/month for 18 years, is that correct?

gtfmg

Yes about that

gtfmg

I had thought I had seen Martin's advise on here about that and how to claim

AlanP_2

gtfmg said:

I had thought I had seen Martin's advise on here about that and how to claim

Advice about what? From what you have said for 18 yearsv you paid £50pm in to the AVC alongside your main Teacher's pension after a conversation with someone from the union.

What was the "deal" when you retired 12 years ago - what did the AVC pot "buy you" in terms of pension and, if you weren't happy with that amount why didn't you raise your grievance then?

I'm, not saying you don't have a case, I have no idea, but it isn't clear to me what the underlying issue is?

Are you hoping to claim against the NUT for the "advice"?

Against your employer?

gtfmg

I have seen various firms advertising that you can claim against the provider for misleading advise (from the provider) in the same way as people do with PPI. It's not against the Union but against the provider whose agent made the claims

Dazed_and_C0nfused

Have you got details of the "claims"?

You have paid over c£10,800 during the 18 years.

What was the pension pot worth when you retired and started taking £500/year?

Is the £500 inflation proofed?

Is there a spouse pension on your death?

dunstonh

Can I make a claim for being mis sold?

You haven't said how you think it was missold.

 I paid £50 a month and I was sold it on the basis that I would get a pension boost of up to £3k pa. 

As the illustration said at the time, the figures are not guaranteed and you could get less than that.   30 years ago, investment returns were much higher (double before inflation typically) and annuity rates were much higher (more than double again).

The reduction in inflation and increase in life expectancy along with the reduction in interest rates caused gross returns to be lower and annuity rates to fall.    Net of inflation though investment returns are broadly similar.

That said, I suspect your memory is not as strong on this as it was so long ago (understandably).   You paid in £600 a year for 18 years and thought it would pay you back £3000 a year for 30 years. Does that really sound realistic to you?

When you bought your annuity, did you buy it on the same terms on the original illustration?  or did you take the 25% tax free cash as well. (the original illustration would not have had 25% cash as that was not allowed at the time).  I suspect you took the 25% cash as it is a no brainer on personal pensions.

Did you increase the monthly payments over the 18 years to keep it up with inflation?   Your comments suggest you didn't.   So, it looks like you failed to take into account inflation erosion.

I have seen various firms advertising that you can claim against the provider for misleading advise (from the provider) in the same way as people do with PPI. It's not against the Union but against the provider whose agent made the claims

The provider would never have made any claims.  Their projections were set by the regulator and reflected the times.  The provider never sold you anything and has no liability for the sales made by any third party. Only those made by its own staff.

If the Union sold it to you then its the union that is liable.  Although a lot of union stuff was done via mailshots etc that earned the union money but took on no liability for advice.   I doubt the NUT rep was authorised and regulated. So, it would likely be a non-advised "purchase" rather than an advised sale.   If you didn't use an adviser you cannot complain about advice.