Pensions Mis-selling - getting expert financial advice

jewellery10

I was mis-sold a private pension in the 1990s after being persuaded to leave my company's final salary scheme to take up a private defined contributions scheme.

I was given a "pension guarantee" by the private pension provider that I would not be any worse off as a result of this mis-selling.

I am now approaching my occupational retirement age (65), and I need expert financial advice on whether what I am offered as a "guarantee" is correct or not. 

My situation is complex because my company went into administration (that pension scheme was closed), but my employment contract was transferred through TUPE arrangements into 2 consecutive companies that had final salary pension schemes (which I joined a while after my employment contract was first TUPEd)

How do I go about finding a suitable independent financial adviser who can give me expert advice to calculate if what the private pension provider is offering me is correct or not? I do not trust them, as it took me 3 years to sort out my late husband's pensions (mis-selling) and numerous complaints to the Financial Ombudsman (which were upheld).

Any ideas or pointers on where to look for information would be appreciated.

Brie

Most of the pension mis-selling was sorted out late in the 90s and most of the private pension providers will have closed their teams down that dealt with this.  Hopefully leaving a process behind for others in the company to follow should any cases pop up much later.  There was never the intention of a end date like with PPI to stop late entries to the review so don't let anyone tell you otherwise.

I would approach things from 2 sides.  First tell your private pension administrator that you want them to review whether or not you were mis-sold the private pension.  In writing with all the calculations.  Second, go to the final salary scheme's administrator and ask if they can provide you with a copy of the pension scheme rules as applied when you opted out.   This administrator is hopefully the same one that administrates the initial scheme you were opted out of so will be able to give you some sort of idea what would have happened as you were tupe'd along.  

An IFA may only be required at the point where your private admin company says there's no loss to you.  You might want to contact any union you might have been in at the time as well.

Now there's lots of reasons you may not have had a loss.  Maybe the private co did do a good job on getting you something special.  Maybe because of the tupe you would have forfeited benefits somehow.  But things to look out for are was there an early normal retirement date that you gave up.  (in the 90s it may well be 60 instead of 65).  Were there guaranteed increases before or after retirement?  Base on CPI or RPI or a fixed percentage?  (likely to be the highest of one of those but possibly with reservations i.e. RPI but only up to 8%)

Best of luck with this.  As I know only too well lots of people were convinced they had done the right thing and refused to participate in the review.  Many simply couldn't be contacted.  Some companies were better than others are being persistent in following through everything.  

Mark_d

Pensions Review finished a long time ago.

https://www.financial-ombudsman.org.uk/businesses/complaints-deal/pensions-and-annuities/transfers-from-defined-benefit-scheme-pensions-review

Brie

Mark_d said:

Pensions Review finished a long time ago.

https://www.financial-ombudsman.org.uk/businesses/complaints-deal/pensions-and-annuities/transfers-from-defined-benefit-scheme-pensions-review

Yes but it doesn't mean there's not a reason to complain still.  

Marcon

Brie said:

Mark_d said:

Pensions Review finished a long time ago.

https://www.financial-ombudsman.org.uk/businesses/complaints-deal/pensions-and-annuities/transfers-from-defined-benefit-scheme-pensions-review

Yes but it doesn't mean there's not a reason to complain still.  

You're both completely missing the point. OP has already had a review and mis-selling was confirmed. Restitution in OP's case was a 'no worse off' guarantee at the point they came to take their benefits. They are asking how to check what they have been offered is in line with that guarantee now they've reached the point of taking their benefits.

Whether anyone can add to what was said when OP asked the same question in 2019 is another matter: https://forums.moneysavingexpert.com/discussion/6002390/pensions-mis-selling-financial-redress#latest

If Retirement Angel is still with us, perhaps see if their offer made in 2012 to look at your late husband's papers is still open (this time to you): https://forums.moneysavingexpert.com/discussion/3999645/pension-mis-selling-calculations-how-do-they-do-it#latest

robatwork

Sadly we're an Angel free zone

 

dunstonh

How do I go about finding a suitable independent financial adviser who can give me expert advice to calculate if what the private pension provider is offering me is correct or not?

its unlikely that any IFA would have the software to carry out an actuarial calculation.  You would need to employ an actuary.

Marcon

Bother - thank you robartwork.

OP - I've had a look at the FCA's website and I suggest you have a look at this thread:

https://www.financial-ombudsman.org.uk/businesses/complaints-deal/pensions-and-annuities/compensation-for-lost-guaranteed-pension-benefits

I would then contact the private pension provider and refer them to the FCA's website/that page, quoting (in full) the FCA requirement:

Once the calculation’s been done, you’ll need to pay the consumer any resulting loss. You’ll also need to send a copy 'of the calculation to the customer, set out in a way that’s easy for them to understand.'

Then see what you get...or if you've already received something and you haven't found it 'easy to understand', go back and say so, asking them to have another go at explaining in a way which will set your mind at rest.

jewellery10

Thank you for this information, which I will digest. Yes, I have asked the same question in the past, but really did not get to understand what data/methodology I needed. At the time in 2019 I was entitled to redress against one pension which I was entitled to at age 60, but it was linked to another pension which superseded it as my contract of employment was subject to TUPE.  That pension is due this year. 
Finding someone, or some organisation to explain things in a clear and unambiguous manner is difficult. I had 3 years of hassle dealing with the private pension provider with my late husband's pensions. They just send out automatically generated letters demanding his death certificate for example, even though I had written to them on numerous occasions that I did not have it at the time (obtained it 18 months later after an Inquest). I complained to the Financial Ombudsman at the time, and did receive monies as compensation because my complaints were upheld. However, I still did not feel the PPP divulged all the facts.

They never did show me how the calculations were done in his the "redress", and I want to be better informed this time around.

Any pointers to how I can find an actuary who deals in such matters, or the product name of the software that is used to do such calculations would be appreciated.

Marcon

Forget the software idea - there isn't just one product used. Quite apart from the cost, the level of understanding needed to operate it makes it a non-starter.

See https://www.actuaries.org.uk/find-actuary to find an actuary who can assist.

shortseller09

Be aware that the actuary used originally to calculate the 'guarantee' was almost certainly independent, and therefore you may pay another actuary a significant sum to come up with the same offer.