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LGPS Incorrect statements.
Duffymich
Forumite 3 Posts
Hi,
Over the last 6 years, I have been receiving my LGPS deferred pension statements, and everything looked fine. This year, my statement arrived and almost all of my figures were halved, I was devastated as it was a healthy final salary scheme. I was told incorrect figures had been entered during the pension being transferred. I am devastated and angry. Should I be referring this case to the Financial Ombudsman for pensions or seeking some sort of compensation? Cheers.
Over the last 6 years, I have been receiving my LGPS deferred pension statements, and everything looked fine. This year, my statement arrived and almost all of my figures were halved, I was devastated as it was a healthy final salary scheme. I was told incorrect figures had been entered during the pension being transferred. I am devastated and angry. Should I be referring this case to the Financial Ombudsman for pensions or seeking some sort of compensation? Cheers.
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Replies
What exactly do you mean?
If they are unable/unwilling to resolve this, then you may ultimately progress your complaint to the Pensions Ombudsman. (Your LGPS will tell you how to do this).
However, I have to be perfectly honest with you and say that if a genuine mistake had been made, the Ombudsman won't order your LGPS to pay you the original estimate - or to pay you much in the way of compensation. The Ombudsman's ruling in similar cases has been that the pension provider has a duty to all scheme members to ensure that only the correct amounts are paid, but with the scheme being ordered to pay a one-off sum of £500 or so as compensation for the 'disappointment' caused by the incorrect estimates.
I know this isn't what you want to hear, but I can only be honest with you. Annual benefit statements are only estimates, and I'm sure you'll find that your statements carry the rider that 'this is just an estimate and is not guaranteed' or words to that effect.
I wonder how this has come to light after all this time? Possibly due to the GMP revaluation excercise, which has been dragging on for a while now? Can only guess that the GMP figures confirmed by HMRC were way different to the figures on your records, hence the complete recalculation.
If however you mean the 'halving' was confirmed correct (rather than incorrect), well in general terms you would need to be able to show you irreversibly changed your plans because of the falsely higher figure.
Silvertabby, thank you for your honest and constructive feedback, I will act on your recommendations.
hyubh, sorry to hear you were perplexed. The figures were presented to me prior to me retiring, in fact they helped me make a decision with regard to retiring early as the LGPS seemed attractive for when the time came to activate and claim my pension amounts. With six years of statements, I assumed the figures were correct, I had no reason to think otherwise. Now that I have been issued figures which halve my pension, and instead of getting a 45k lump sum, I will be getting a 12k lump sum, this may explain why I felt devastated, but that emotion has turned to anger, where I have been given false information for six years.
dunstonh, thank you for taking the time to respond, it appears this is a common occurrence in LGPS pensions.
Cheers.
Planning for Retirement
Please do keep us posted on the outcome.
Live service annual benefit statements, however, are only as accurate as the year end information supplied by the employer. The LGPS software picks up and 'red flags' any records which have changed by a higher than expected amount, so it can be checked by a pensions administrator, but cumulative small 'errors' can and do rack up.
Were you receiving an annual statement of benefits?
Did you receive a statement of deferred benefits on leaving the scheme?