Accessing deferred LGPS problem with AVC provider

Lummoxley

Hi, I approached my LGPS on the 1st of May this year requesting my deferred LGPS pension + AVC be put into payment.

Since early  June the sticking point has been communication issues between my LGPS admins and the AVC provider, with the admins saying they are not getting a response.

Despite repeated contacts from myself this now appears to be stuck with LGPS saying they cannot process until a response is received but are unable to tell me how they can escalate this.

I have submitted a complaint to my LGPS as they keep giving me conflicting information, is there is anything else I can do progress this as there is no end in sight currently?

Thanks  

Silvertabby

This is inexcusable.  Does your LGPS have any idea what the problem is?  Is it just your records that your AVC provider is having problems with, or is it all retirees?  If the latter, then I can't understand why your LGPS hasn't escalated this - they must be getting hammered from all sides, especially from those who are retiring from 'live' and who possibly don't have any other income coming in. 

Unfortunately, your LGPS is stuck without at least confirmation of your disinvested amount, as they need this to be able to work out your TFLS etc. 

Lummoxley

Thanks Silvertabby, I think it is just me and it is the lack of clarity that is frustrating. To enable planning I need a timescale that this will be resolved within but LGPS are unable to provide this as they keep returning to your last point.

I was told at the beginning of last month that it was being sent to their "escalation team" and then last week was informed that the escalation team had just repeated the first step, that was done at the beginning of June, i.e. emailing the AVC provider requesting the disinvestment amount.  

I'm fortunate as I have savings but if I didn't I would be super stressed by this. 

What would a normal timescale be?

xylophone

https://www.lgpsmember.org/your-pension/planning/paying-extra/additional-voluntary-contributions/


Have you yourself tried contacting your AVC provider? Which one is it?

Lummoxley

The AVC provider say they can only communicate with the admins as it is a group pension.

It's Scottish Widows.

Silvertabby

Lummoxley said:

Thanks Silvertabby, I think it is just me and it is the lack of clarity that is frustrating. To enable planning I need a timescale that this will be resolved within but LGPS are unable to provide this as they keep returning to your last point.

I was told at the beginning of last month that it was being sent to their "escalation team" and then last week was informed that the escalation team had just repeated the first step, that was done at the beginning of June, i.e. emailing the AVC provider requesting the disinvestment amount.  

I'm fortunate as I have savings but if I didn't I would be super stressed by this. 

What would a normal timescale be?

I retired before Covid, so things moved quicker then.  But in the case of a deferred into payment, I would request the disinvested funds as soon as the member had confirmed their payment choices.  Usually about a month from the 'retirement' date.

xylophone

The AVC provider say they can only communicate with the admins as it is a group pension.

But they are not communicating with either you or the administrator?

Looking at Guidance below, I fail to see why they can't  give you the reason  for their failure to respond to the administrator.



https://adviser.scottishwidows.co.uk/assets/literature/docs/43335KF.pdf

If you’ve any questions, or any changes you want to make to the plan, please contact us. You can phone or write to us.

Call us on 0345 755 6557 during the following times: Monday to Friday, 9am–5pm

We may record and monitor calls to help us to improve our service.

Lummoxley

Thanks xylophone. I tried Scottish Widows again and this time, after a lot of transferring between departments, was advised that LGPS did not send the "required form" as an attachment to the email in June, which they responded to asking for the form. This was returned to them on the 15th September with no other contacts in between. They are now processing this.

So, either my LGPS or Scottish Widows are being economical with the truth regarding communications between them.  

xylophone

was advised that LGPS did not send the "required form" as an attachment to the email in June, which they responded to asking for the form. This was returned to them on the 15th September with no other contacts in between. 

Delay, incompetence and confusion now seem to be the hallmarks of pension administration.

They are now processing this.

The truth, the whole truth and nothing but the truth?

Mind you, I note that no guarantees are given as to how long "processing" will take........

Lummoxley

xylophone said:

Mind you, I note that no guarantees are given as to how long "processing" will take........

Well, the SW advisor was a bit sheepish on the call as it is supposed to be a 10 working day turnaround and it had not been processed as of today. He said it had been marked (but not approved) as requiring escalation. 

He even offered to open a complaint, but I'm happy to allow a few days leeway.

He was, however, unable to provide a timescale for the escalation to be approved or indeed acted upon.   

Lummoxley

Well this saga continued for several weeks but has finally been resolved.

I had to open a complaint with Scottish Widows, which, to be fair to them they handled exceptionally well by giving me contact details for an individual complaint handler which was vital. They also offered compensation within a few days of the complaint being opened.

There followed several more weeks of frustration as LPPA* have exceptionally poor customer services, and processes that are not fit for purpose.

In the end I had to contact my ex employers pension team and get them to talk directly to the SW complaints handler and then liaise back with LPPA to sort it out. 

*Local Pensions Partnership Administration my LGPS admins