Problem with LGPS AVCs with Prudential

Silvertabby

daveyjp said:

I am aware that at least one LGPS Director is in direct contact with the CE of Pru demanding the problems with website, funds deposit, delays with AVC payments etc is sorted out as a priority.

There will be consequences for Pru if it isn't.

I know from my former colleagues that they, as LGPS administrators, are getting their ears ripped off over this.

As much as I/they sympathise, this mess isn't their fault and swearing at them really won't help.

Nebulous2

I'm three weeks on from my last contact, called them again yesterday to ask about my cheque and have been promised a call back with an update by the end of this week. I've emailed the LGPS to alert them to the fact I haven't got my money, but have no intention of pursuing the administrators. I haven't made a complaint -- yet. 

EP456

EP456 said:

Nebulous2 said:

Silvertabby said:

Nebulous2 said:

Nebulous2 said:

Silvertabby said:

Nebulous2 said:

stephenadarglas said:

@Nebulous2 you have to speak to your own LA to see how it works.  One of the options is to use your AVCs to buy extra pension in the LGPS.  Please seek advice.

Cheers - I intend taking it as cash. I signed up for an AVC at Christmas, with no intention of retiring yet, expecting my first payment would come out at the end of January. I don’t have a lump sum for my pension at all, so the intention was to get some tax-free cash. My deductions didn’t start until February. I then made the decision to leave end of March. 

I’ve been told I will be sent my options after our March payroll run is notified to the pension fund. We also have an outstanding pay claim for 20/21. 

I can afford a delay in payment, but as I have retired early I have an actuarial reduction. It would be affordable for me to take the waiting time for this mess (partly of my own making) to resolve,  as a deferral period instead of as a delayed payment, but I’m not clear if that will be offered. 

One of your pension options will be 'deferral of payment until a later date'.  Just go for that, then request revised options once everything has been sorted.

To update this for anyone interested. I handed in my notice late Jan, to leave end of March and it took two months post retirement to get figures from the LGPS, about four months after they knew I was going. 

I accepted the figures, said I wanted maximum pension and the AVC as cash. They then said figures had to be checked by someone else at pension scheme. 

I've just heard I'm getting 3 months pension at the end of June. They have separated out the AVC and handed any issues with the Pru directly to the Pru to resolve. They told me the Pru will send a cheque to my home. 

Update again - called today to ask about my cheque. The local authority contacted them asking them to disinvest and send me a cheque. Their system is showing a zero balance, so they don't have a cheque to send me. They have written to the local authority asking for details of any contributions made. The local authority have not responded. 

I've given details of my contributions and they will now chase these up. They may be in a suspense account. 

It could be a covid thing, but I've never heard of the Pru sending a cheque for the full 100% tax free cash straight to the pension member before 

The procedure has always been to send the money to the linked  LGPS on disinvestment, so the money can be incorporated into the maximum tax free cash calculation.  

Is it possible that the Pru have indeed sent the disinvested money to your LGPS as per normal procedures?

I don't think so. It looks to me as though the payments have never made it into my account, in line with the experience of others in this thread. Although it took 3 months for my pension to be put into payment, I'm quite pleased they agreed to pay my pension and asked the Pru to pay me direct or it could have taken much longer.

I didn't take a lump sum from the LGPS at all, and my AVC is only worth about £3k, so I certainly wasn't taxing the limits of what was permissible. 

I retired 31 May and received a letter from my LGPS stating pension will be paid on 15th of each month once they have completed all the calculations, so I am hoping it will be from 15 July.

They also stated “We will advise Prudential of your election to take your entire AVC fund as cash and they will send you payment directly in due course.”

Fingers crossed….

Update - I received all of my AVCs funds directly into my bank account.

bonnyrigger

Another quick update - was in touch with my LGPS fund (Lothian PF) about an unrelated mattter and the person asked how I had got on with Pru. Gave them the bad news and then asked about the possibility about moving funds to the other AVC provider (Standard Life).
Unfortunately they told me that they (Lothian) had some unspecified issues with Standard Life which meant they were no longer allowing new AVC accounts to be opened with them.
So basically I'm now completely stuck with the hopeless Pru!
Surely LGPS pension funds need to be making sure that their members aren't trapped with this useless provider and have a way to transfer funds out.

Karroovlakte

Adding to the above, I too am a member of an LGPS and invest in AVC's with Pru.  In early June I noticed that no payments have been recognised on my account since January and made an online complaint (there seems to be no other way to request clarity and phones are not answered).  To date I have not had a reply and having checked today, payments are still not recognised.  I notice in the postings above that LGPS officials have promised to take the matter up with the Pru, but clearly this has not had any impact.  I would actually like to increase contributions, but no don't feel very confident about the company.

Strangely, I received a cheque for £250 last week in which the Pru says "sorry for the inconvenience caused" - no explanation what they are referring to.  I tried to call today to discuss, but as usual, phones are not answered.

bioboybill

I was surprised to receive a further email today apologising for the latest 2 month delay in receiving my payments and ignoring all contact. Apparently the FOS have contacted them about my complaint and the Pru are sending me another £500 cheque. Oh, and my July payment is still missing.  My complaint has cost them £1K thus far.  Financial madness to do this rather than run their business properly!

Nebulous2

I didn't get the call back I was promised, called again and this time registered a complaint. I now have a letter saying they hope to conclude the investigation of my complaint within 4 weeks. 

OldBeanz

I had a call yesterday and they are quite happy that their responsibility to contact the pay provider is no more than sending a letter. If the letter is not received then it is up to me to resolve the issue rather than them. So they write (yes write a letter and post it) and take no řeponsibility if it is not received or actioned. Even when told, they cannot make a phone call to the payroll system.
They also insist that contacting them through their secure Web site does not identify you enough to initiate a Subject Access Request.
So is it secure or not?
The chap talking to me could not access pdf files at home so 17 months after working from home became the norm their DR/BCP is not functioning as it should either.
It is high time that the LGPS was taking a more robust stance with this lot.

bioboybill

Got my second £500 cheque from the Pru at the weekend, but still no sign of my July payment. I hoped that the "maintenance" at the weekend would include my £600 from July.

bioboybill

Finally got my July payment showing now. Let's see how it goes from here.