Problem with LGPS AVCs with Prudential

OldBeanz

My issue is that they have not changed my wife's contributions which were changed so she would not pay any tax. They appear to at least have acknowledged that contributions have gone astray and that will be resolved while still issuing notices saying contributions will change when they don't. 

Rich2808

Still no contributions for me posted since September payroll.

I am wondering if this will be sorted before I retire - and I am not due to retire for another 15 years!! Just joking but it seems a never ending list of promises but the widespread problem remains unsorted.

What is exactly happening to the monthly contributions - where are they sitting (in a suspense account)?

bioboybill

It is quite amazing the different experiences of customers. Some of us just being ignored and left to hang with money missing, whereas others are getting apologies, payments appearing and in some cases even compensation. I should have got my 12 week letter today, but not even had that this time. Surely even they will take down this promise to put it all right by the beginning of April soon, as it’s just another reminder of an unfulfilled promise.

stephenadarglas

My wife retires on April 30th.  I'll keep everyone updated as of when she receives her cash from them.

Steve33

I noticed in November 2020 that my contributions were not showing past October. I was concerned as I was thinking about taking early retirement and needed to plan. Through the Pru web portal in November I both raised an issue and made a complaint. Like others I received a holding letter initially then nothing for months. At the end of February I made a complaint to the Financial Ombudsman. After a few weeks I received an email from the FO saying that because the AVC was linked to my LGPS work pension that they can not deal with it but they could forward it to the Pension Ombudsman Service if I wanted along with my screenshots and scans. They did this but the Pension Ombudsman required me to complete their own complaint form which was on 6th April.

In the meantime I received a final letter from the Pru complaints department on 17th March upholding my complaint and to expect an ex gratia cheque for £300 within 10 working days (still waiting).

The Pension Fund team just confirm what I already know - that the pension has to be paid at the same time as the lump sum from the AVC, but the team are aware of my situation - so not any help.

I decided I had to retire early (with actuarial reduction) in February due to health concerns. Like others on this site I am not receiving any pension payments. I’m lucky that my wife is still working as a nurse but we’re still having to now eat into our savings to get by.

This is an appalling situation affecting many people and it is unbelievable that it is allowed to carry on for so long. Also under the circumstances and with the number of people affected there should be a pragmatic decision made to allow pensions to be paid out while the lump sum is held up.

Rich2808

Steve33 said:

I noticed in November 2020 that my contributions were not showing past October. I was concerned as I was thinking about taking early retirement and needed to plan. Through the Pru web portal in November I both raised an issue and made a complaint. Like others I received a holding letter initially then nothing for months. At the end of February I made a complaint to the Financial Ombudsman. After a few weeks I received an email from the FO saying that because the AVC was linked to my LGPS work pension that they can not deal with it but they could forward it to the Pension Ombudsman Service if I wanted along with my screenshots and scans. They did this but the Pension Ombudsman required me to complete their own complaint form which was on 6th April.

In the meantime I received a final letter from the Pru complaints department on 17th March upholding my complaint and to expect an ex gratia cheque for £300 within 10 working days (still waiting).

The Pension Fund team just confirm what I already know - that the pension has to be paid at the same time as the lump sum from the AVC, but the team are aware of my situation - so not any help.

I decided I had to retire early (with actuarial reduction) in February due to health concerns. Like others on this site I am not receiving any pension payments. I’m lucky that my wife is still working as a nurse but we’re still having to now eat into our savings to get by.

This is an appalling situation affecting many people and it is unbelievable that it is allowed to carry on for so long. Also under the circumstances and with the number of people affected there should be a pragmatic decision made to allow pensions to be paid out while the lump sum is held up.

Have you thought of raising your case with the media - say the personal money pages - Katie Morley at the Telegraph usually gets things sorted!

I think the only thing that will help sort this out is continuing bad publicity and them losing business.

Because its scandalous - and in your case seriously adversely affecting your life and retirement - and health!

https://www.telegraph.co.uk/money/katie-investigates/katie-morley-investigates-contact-form/

bioboybill

That's bizarre since my AVCs are also linked to my lgps, and I haven't been told the FOS can't look at my case. They just said it could take up to four months to be allocated, at which point I would be at the six months limit for raising a case! Clearly the regulatory body aren't fit for purpose in this country. The Prudential are in no hurry to do anything to put things right and under no pressure whatsoever to do so. When does "the beginning of April 2021" end? It wouldn't surprise me if that notice disappears to be replaced by May, June etc.

bioboybill

Imagine my shock today when I logged in and found all my missing contributions showing and my account up to date! It's only taken them 3 months to do something that should have taken a couple of days. Still no letter to inform me of the result of their "investigation". I hope everybody else similarly effected gets sorted asap, particularly those still waiting to claim their pension since last July. Time will tell whether this is a permanent fix or whether this recurs down the line.

Rich2808

bioboybill said:

Imagine my shock today when I logged in and found all my missing contributions showing and my account up to date! It's only taken them 3 months to do something that should have taken a couple of days. Still no letter to inform me of the result of their "investigation". I hope everybody else similarly effected gets sorted asap, particularly those still waiting to claim their pension since last July. Time will tell whether this is a permanent fix or whether this recurs down the line.

Well done.

No such luck for me yet - 8 months of contributions still not showing!

You might assume they would upload these as a batch - or are they doing it manually account by account?

MX5huggy

They’ve give up holding out for the beginning of April :-

Announcement 

It is taking us longer than normal to process the investment of some contributions. This is impacting the information available to you on MyPru.  If you notice your contributions haven't been invested, please be assured that where an investment has been delayed, we'll make sure investment of your contributions is backdated to the date they were originally received by us.  We are very sorry for any inconvenience this may cause.

Suppose it’s progress they think it might be sorted for April 2022.

4 months missing for me.