Pension Redress

helpneededurgently

Hi. Back in 2010 i was advised to leave my company pension scheme, which I did and transferred to a private pension. Two years ago the company got in touch and said their advice was misleading. To cut to the chase they have now made me a substantial offer to redress the situation. They worked out the figure and then took notional tax if 15%. This is 25% tax free and 20% of 75% hence 15%. This money is to be paid directly into my bank account. I am currently a higher rate tax payer. My big question is do I need to pay more tax? They assumed I would be a basic rate tax payer at retirement age. Clock is ticking on how long i have to accept their offer so any help / knowledge greatly appreciated. 
Thank you in anticipation. 

green_man

In a scenario like this the typical advice (if you accept the offer) would be to add the money to your new Private pension to counteract the potential loss from transferring out of the company scheme.  Do this and it should all work out eventually.  Otherwise then yes you may need to pay addition tax on this.

sandsy

They should adjust it for your individual tax position. See paragraph 5 of the regulator's guidance on redress:
https://www.fca.org.uk/publication/finalised-guidance/fg17-9.pdf

Manchesterunited1

Hi,
can I just ask if you worked for communisis in Leeds as your situation is very similar to mine, I was persuaded to transfer out of the company DB pension scheme into a private pension and I was contacted by JLT/MERCER to say they were looking into the advice they gave me in 2010. 

Thanks