Actually getting the tax-free lump sum.

M_j_t

Hit 65 in March. Got a letter, via email, re the arrangements on 19th, dated 16th. Saying Your tax-free lump sum is £59,350.28. In the next few days, we'll pay it directly into your bank account.

(Please allow up to a week for the payment to go through.).

I'm in Australia so gave a little more time.

2 Weeks nothing. Then I see another pension (Safeway) had the first monthly payment be paid successfully into the same account (exact same details).

I contact the bank, and explain that a large amount appears to have not appeared and ask for them to clarify that it is not being withheld (possibly to anti-money laundering measures). The representative is insistent that they are not withholding anything.

I send an email saying that I have not received the funds and also reiterate the instructions for the SWIFT transfer.

The following day I see that the first regular payment has been made (so obviously the instructions are clearly correct).

Come the Friday (8th April), as I have had no response to the email, I phone (eventually as I had to adjust my VOIP to allow overseas calls) BMW(UK) help line. Apologies and we'll do something.

Late Monday I get an email:-

    Your money has been sent to your bank but for some reason they asked for more information before they would release it into your account, this has now been sent to them so hopefully it will now be released into your account.

Tuesday 12th April phone the bank, not that happy, why are you still holding my money that you've been withholding for nearly a month now? Why did you say that you weren't withholding it.

The bank says they are not withholding the money, no records, and insist on sending me the transfer instructions even though I pointed out the transaction showing that they had the correct transfer instructions. Clearly telling me we are doing nothing about it, goodbye.

So current situation AON say bank is withholding, Bank is saying AON have not sent the money.

xylophone

So current situation AON say bank is withholding, Bank is saying AON have not sent the money.

Have you asked AON for full details  and proof of date and time of transfer to your (Australian?) bank?

dunstonh

If it was sent via swift, then it passes through a number of banks before it gets to the destination.  It may not be your bank that is holding it up.  It may be one of the others in the chain.

Alternatively, it could have ended up in a suspense account (or whatever the equivalent is in Aus).   The telephone staff at the bank wouldn't know if that is the case or not if it's anything like the UK.  Suspense accounts are cleared out manually but not every day.  

squirrelpie

Problems like this seem to get resolved quickly in the UK once an 'agony aunt' in a newspaper or on TV gets involved. Maybe the same approach would help in Australia too?

Plus as xylophone suggests, try to track the progress of the transfer through the system. Who did AON transfer it to and who did they forward it to, etc?

Marcon

The fact you're in Australia won't stop you availing yourself of free, expert help from https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-problems given that Aon is in the UK. Try that route.

M_j_t

Xylophone, no but was going to. However, after calming down a bit and doing some looking around. I think I understand what is going on.

When I filled out the account details my bank (a credit union) provides the following instructions:-

• If you are to receive a Swift Transfer, please pass the details below to the sender so the payment can be successfully received and processed into your Australian Mutual Bank account
•  SWIFT CODE: CUSCAU2S
•  SWIFT BANK: CUSCAL
•  BSB: 802 084
•  Account: nnnnn Mr A N Somebody

nnnnn being the member number and Mr A N Somebody the member name

As I've said I used this before and more recently.

So I find out CUSCAL is  a bank in it's own right "Cuscal Limited is an Australian company that predominantly provides transactional banking, liquidity and capital management services and products to institutional customers including credit unions, mutual banks and superannuation funds."

So as far as AON are concerned Cuscal are my bank and my guess is that one of the services(sic) that Cuscal provide their clients (Credit Unions) is compliance e.g. adhering/reporting/acting on behalf  AUSTRAK (anti-money laundering e.g. amount over 10K).

My actual bank are a client of Cuscal so Cuscal are an agent for my bank, as I see it, acting on behalf of my bank. It is Cuscal who are likely withholding and saying to Aon we need more information.

What is incredulous is that even though my bank have Cuscal act as their agent, they don't have a clue that they do, at least when facing the customer. 

I'm going to give it a week, at most, to allow for the "up to a week" handling.

If no joy by then then I will let rip in any ways that I can. I'm also thinking if, it comes to it, to basically saying you can't get my money to me then revert to as if I didn't take the lump sum and up my monthly payments.

Thrugelmir

Are you liable to AUS tax upon receipt of the lump sum? 

M_j_t

Thrugelmir, I believe that I will be liable for tax and that is one of my concerns. That is this year my income is low so only the part of the lump sum that is above the tax free threshold is taxable and will be in the lower tax brackets. Come 1st July, then my annual income, without the lump sum, for the following tax year will be above the threshold so the full amount will be taxed and probably jump into higher tax brackets.

dunstonh

 I believe that I will be liable for tax and that is one of my concerns. 

The date the payment turns up in your bank is not the date used for tax purposes.  So, you have no worry on that front.

penners324

Is it worth opening an account with an Australian bank, getting AON to recall the payment, then reissue to the new account?

M_j_t

Penners not really as we have too many accounts to manage as it is. I did have thoughts of moving to another but that would be a lot of hassle and really the choice is the big 4 or a credit union/mutual (who would probably use CUSCAL Credit Union Services Corporation Australia Limited).  I would guess that a reattempt would probably be seen as even more suspicious. 

If comes to redoing then I would, if I can, opt to not have the lump sum but have my payments upped accordingly to the original offer without the lump sum.