L&G added wrong funds

Victorwelldue

This is not really a big deal but I topped up my workplace pension with a personal contribution of £4,000 (so £5,000 top up with tax relief) and clearly told L&G via email which fund I wanted them to invest this £5K in, following their own instructions for single contributions to the letter but they have not invested in the fund I requested and have instead just applied my usual monthly contribution fund split. I wanted a different fund as I was rebalancing a bit.

This was just a few days ago and as it happens the funds they have invested in have fallen a bit since they invested and the fund I requested has risen a bit.

So what's the usual scenario here if I complain? Do they check the performance of the relative funds and put me back in the position I would have been had they not made this error? Any small compensation likely?

dunstonh

So what's the usual scenario here if I complain? Do they check the performance of the relative funds and put me back in the position I would have been had they not made this error? Any small compensation likely?

Yes, the performance matters.  If there is no loss, then there is nothing to compensate you with.  Indeed,  they could void the purchase made and correct it with the right unit prices and keep the gain for themselves.   

Albermarle

Are you sure they accept such instructions by e mail.
I remember with one on my workplace pensions, you could switch existing funds around on line with no issues, but if you wanted to change where new contributions went you had to call them.
Then a ten minute question time to cover compliance issues etc before they would change anything.
They agreed it was a bit illogical but it was the system.

dunstonh

It is worth noting that some workplace scheme (and a few rare individual schemes) cannot deviate from the main investment instruction unless you opt out it.    Happens a lot with plans with lifestyling or if you have chosen a certain fund or fund mix to be your scheme default.   You have to deselect that option if you want to top up to something different.

Victorwelldue

Nah its exactly as I described. I've done it twice before they just messed up this time. Here's the L&G instructions:

You can make additional contributions into your pension plan by bank transfer or cheque, please follow the below instructions:

 

Step One – Online Bank Transfer

The bank details:

• Account Number: XXXXXXXX
• Sort Code: XX-XX-XX
• Account Name: Legal & General Assurance Society Cardiff MI SH
• Bank: Barclays

Payment reference:  - Policy number and as much of the members’ surname as the space allows. (Example : 2xxxxxxxx1BLOGGS)

 

Step Two  – Email to confirm

Once you have completed the bank transfer, please send the following information by email to xxx@xxx.com (the L&G Finance Team), to confirm the payment details:

1.  Policy Number
2.  How much money has been paid in
3.  Who is making the payment (i.e. the member, employer or family) - So we know if tax relief needs to be added.
4. Investment fund to apply the contribution

Please make sure this is sent on the same day as the payment.