Seven Months Of Delays By Pension Company

AndrewJ56

Albermarle.

 I asked for a ‘value’ and ‘CETV’ figure so that I could do the sensible thing and explore my full options.

AndrewJ56

Marvin,

thank you for your advice and information, appreciated.

Albermarle

AndrewJ56 said:

Albermarle.

 I asked for a ‘value’ and ‘CETV’ figure so that I could do the sensible thing and explore my full options.

Just FYI, there are numerous threads on the forum on the subject of transferring out of DB schemes which might be worth reading at some point . Here is one , with other links included.
Transfer DB pension — MoneySavingExpert Forum

xylophone

This indicates you just want to start taking the DB pension . With a lump sum and then a monthly income. Normally no IFA needed.

It seems that the OP consulted the IFA because he had other pensions apart from that with IBM and wanted a professional eye cast over his retirement plans.

As I had a number of small pensions from other companies and a 3 part pension from IBM I approached an IFA for advice as I didn’t know what my full options would be.

And I'm guessing that with IBM, as well as the DB section pension, he perhaps had AVCs and a DC section pension ?

If so, it is possible that he had various options for taking the pension (perhaps buying more scheme pension/taking higher PCLS etc).

At all events, it appears that he made his decision and completed the necessary paperwork but....

 Now I have elected how I want to draw down the DB part of my pension (with a lump sum) they are stalling putting my request into action.

I have returned signed forms stating what I want to happen and despite receiving a ’read receipt’ and a response from XPS they stated to the IBM Trust that they haven’t received the completed forms. 

I suppose that it may be one of those situations where papers are passed from team to team and that is where the delays lie, especially if there are still lots of team members working from home and the IT systems don't cope well with this.

So far XPS have blamed the pandemic, IBM’s System Software, not receiving requests (despite triggering ‘read receipts’ and responding to the not received emails). 

Really this is very, very poor service - I can well imagine that the OP must be growing increasingly anxious about his ability to pay his household bills etc.

During this time I have been using savings to live off. Now these are almost gone I am using loans and living on fresh air.

AndrewJ56

Xylophone you have pretty much hit the nail on the head. Does anyone consider 7 months to be an acceptable time frame for IBM’s agents to resolve this or should potential retirees start the ball rolling at least 7 months prior to retirement?

Albermarle

AndrewJ56 said:

Xylophone you have pretty much hit the nail on the head. Does anyone consider 7 months to be an acceptable time frame for IBM’s agents to resolve this or should potential retirees start the ball rolling at least 7 months prior to retirement?

Probably if you want to transfer out of a DB pension , then a few months is probably normal ?
You have to get the CETV, find a suitable IFA ( not easy ) to give the necessary ( long) report and recommendation .
Then if you get  a positive recommendation, the actual transfer has to be actioned. New pension opened and investments made.
However waiting this long ,and not to have even got to the CETV stage is really unacceptable.

Even if you just want to start taking the DB pension , it seems to be a couple of months minimum , with potential for delays . Mine took 6 months from first enquiry to first payment

xylophone

should potential retirees start the ball rolling at least 7 months prior to retirement?

I have seen a number of scheme guides over the years and those  coming up to  retirement are usually advised that they need to make their first approach to the administrators well in advance of the date that they wish to draw the pension.

The Civil Service ask for at least three months notice - I seem to remember that it is much the same with LGPS.

That said, seven months of going back and forth and having to involve the Scheme Trustees seems excessive......

What have you decided to do about your other pensions?

AndrewJ56

Xylophone I have wrapped all of my other pensions into a single cash fund with the Pru. This fitted my requirements perfectly and gives me lots of flexibility (and has grown at over 8% in 6 months).

It also prompted my post as this was completed within a few months and not over 7 which the IBM and XPS DB pension has taken.

It’s been a real eye opener as I (like many ex colleagues) had wrongly assumed that IBM would look after it’s colleagues and ex colleagues and keep their best interests to heart. However retirement has proven very stressful as a result.

It would be interesting to know if anyone else has experienced similar issues with their pension providers?

xylophone

Here is somebody trying to begin the  process.

https://forums.moneysavingexpert.com/discussion/6314848/are-there-any-rights-with-regard-to-being-provided-a-retirement-options-statement#latest

A few years back, I can remember a number of posts on the forum concerning quite substantial delays in paying civil service pensions.

And delays for  so called "complex calculations"

https://www.pensions-expert.com/DB-Derisking/Ombudsman-criticises-Aon-Willis-Towers-Watson-over-benefits-error?ct=true

cfw1994

AndrewJ56 said:

Xylophone you have pretty much hit the nail on the head. Does anyone consider 7 months to be an acceptable time frame for IBM’s agents to resolve this or should potential retirees start the ball rolling at least 7 months prior to retirement?

Sounds totally unacceptable to me 🙄

Aviva mucked about a little with my first withdrawal to the extent of a week or so delayed....they compensated me £100 (without me really pressing/asking or indeed expecting anything other than a promise to try better next time!)

In your situation, if you have taken loans, I would expect far more significant recompense.  

TBH, I would also expect a decent IFA to be more switched on to deal with this and lower your stress somehow.....there must be heads that can be banged together over this.

Best of luck