Advice re mis sold pension in 1992

ArtyH

Hello, I would like some advice re a mis sold pension in 1992. I had been an electrician working for British Coal, with 21 years service. The industry was in decline, I was at the last mine in Northumberland. I applied for Northumbria police, was accepted and started paying into its pension fund. I asked for a pension transfer valuation, it took six months to work out. The quote was for 9 years and 28 days approx 44 thousand pounds, which could be transferred to Northumbria Police. At the age of 37 then this would have left me with a short fall of 2 years as at the time it was a 55 year retirement age. I was informed that it was the last year in the pension which made it worth while and there was a significant reduction for reduced years or contributions.
I sort independent financial advice locally. To cut a long story short I was told to take out a private pension, transfer my mineworkers pension to the new fund and stop the police pension, which I did. As at this time the government was pushing private pensions and causing worry over the whole pension issue. Every year for 5 years I increased my contributions to the private pension by more than the payments I would have made to the police scheme. I then asked for a review of the pension. I was visited by a new advisor who informed me I had been mis sold the pension and informed me to apply to the investment compensation scheme. I sent off all the relevant information and eventually it was found that I had been mis sold the product.
The investment compensation scheme at that time was only allowed to recover costs up to 50 thousand pounds. My outstanding balance was much more than that as I will point out shortly.
I was instructed to sign all the relevant documentation and I would be reinstated to my mine workers pension and then the police pension. The problem was to get reinstated I had to sign a letter stating that this would be a final payment. Under these circumstances I felt I had no other choice and a " gun " was pointed at my head, so I signed the document.
Essentially when I re applied to the police pension I was informed that to get back to where I would have been from day one and including the transfer of my Mine Workers pension I would have to forward a cheque for 33 thousand pounds. As would be no surprise to you or any reader this could not be done at this time.
So as things stand at age 52, I have 2.5 years to work before retirement, I have saved and am now in a position to pay the arrears, with a loan.
I have been quoted as receiving approx 65 thousand pounds commutation and 1200 pounds per month as things stand. However if I pay the 30 thousand I will then get 88 thousand lump sum and 1450 pounds per month.
To be honest the thought of paying this money for someone else's mistake is galling to say the least, especially as I have approached him several years ago and he claimed it was nothing to do with him.
Finally , and the reason for this posting, I have a friend who was in the Navy years ago and had a similar problem, initially after refusing to cooperate with his case, he has been contacted " as there has been a change in pension regulations " and his case is being reconsidered.
All I am after is some advice on what would be the best way for me to proceed, and do you think the would be any redress against the person/company ( now no longer trading---surprise, surprise ) who are now operating under a different name, but from the same premises.
Your thoughts would be much appreciated,
thank you to anyone who read this far, and merry Christmas everyone.

ArtyH:beer:

EdInvestor

ArtyH wrote: »

So as things stand at age 52, I have 2.5 years to work before retirement, I have saved and am now in a position to pay the arrears, with a loan.
I have been quoted as receiving approx 65 thousand pounds commutation and 1200 pounds per month as things stand. However if I pay the 30 thousand I will then get 88 thousand lump sum and 1450 pounds per month.

So you pay in 30k and then get an extra 23k in tax free cash, so the net amount to pay in is 7k. For this you will get an extra 250 a month = 3k a year, so in a little more than 2 years you have recouped your 7k. Unless I'm missing something and
especially if the pension is index linked, this looks like a bargain.