Civil Service Pension - Refusal to pay pension in line with their own quotation

Emerit

I retired in January this year (2024).  On their 3rd attempt, I accepted the Civil Service Pension (CSP) pension quotation; £2,095/annum higher than their original quotation!  I dread to think how many people have accepted a low quotation.
Ten months on, and CSP are paying pension that falls short of the quotation (I'm down about £400/mth).  CSP acknowledged their mistake in June.  I've gone through the complaints procedure methodically but still they refuse to make up the shortfall and make proper payments.
I've referred the matter to the Pension Ombudsman - they're now a week beyond their deadline to respond.
Anybody had similar experience and care to share how they resolved it.
Thanks

Lemon_dr1zzle

If the amount you are receiving now is correct it won’t be amended. The previous figures are incorrect and it sounds like CSP acknowledge the mistake. They cannot knowingly pay an incorrect pension. 

Marcon

Emerit said:

I retired in January this year (2024).  On their 3rd attempt, I accepted the Civil Service Pension (CSP) pension quotation; £2,095/annum higher than their original quotation!  I dread to think how many people have accepted a low quotation.
Ten months on, and CSP are paying pension that falls short of the quotation (I'm down about £400/mth).  CSP acknowledged their mistake in June.  I've gone through the complaints procedure methodically but still they refuse to make up the shortfall and make proper payments.

The pension to which you are entitled is the pension as set out in legislation, so simply 'accepting' a particular quotation doesn't change that. It won't give you a right to a higher pension - or deprive you of the right to the correct pension if you accept a lower quotation and that subsequently turns out to be wrong.

Which mistake did CSP acknowledge in June - the fact they had issued incorrect quotes in the past, or that they are (definitely) underpaying you based on their understanding of your entitlement?

What reason have they given for 'refusing to make up the shortfall and make proper payments'?

Emerit said:

I've referred the matter to the Pension Ombudsman - they're now a week beyond their deadline to respond.

That seems a remarkably short time. You might want to have another look at the PO's website to see how long it is likely to take - they don't normally work to 'deadlines', but give indications of possible timeframes.

hugheskevi

Emerit said:

Ten months on, and CSP are paying pension that falls short of the quotation (I'm down about £400/mth).  CSP acknowledged their mistake in June.  I've gone through the complaints procedure methodically but still they refuse to make up the shortfall and make proper payments.

For clarity, is the situation:

• MyCSP have agreed (in writing/email?) that they are paying an incorrect pension, but are yet to change it?
• MyCSP have told you the quote was incorrect?

It sounds like the first bullet, in which case the formal route is IDR1, IDR2, Ombudsman. (IDR=Internal Disputes Resolution process). What did the IDR1 and IDR 2 reports say?

Pat38493

As stated by Marcon, you need to clarify whether you are complaining that they are refusing to honour an original quote which they are now saying was too high, or are they refusing to action a higher amount that they have now confirmed is correct.  DB pension quotations unfortunately are not binding - there are people that sometimes post here who have had to pay back money when the trustees realised they had been overpaid.

Emerit

Thank you for the comments.  Clarifications and a little more detail as follows:
In October 2023, MyCSP (My Civil Service Pension) was notified of my intention to retire in January 2024 - 4 mths notice normally required so I expected a delay in the pension being paid - fair enough?
1st quotation received 28 Dec 2023 - way off the mark; I sent it back to MyCSP pointing out their error.
2nd quotation received Jan 24- I accepted the quotation
3rd quotation received in March - MyCSP told me there was an error in their calculation.  I accepted the quotation.  

Payments commenced in April 24 - less that was stipulated in any of the quotations.
Following many e-mails and telephone calls, the first 'formal' complaint sent to Scheme Administrator 01 May 24.
21 May, MyCSP issue Pension Finalisation Statement (values as per their 3rd Quotation) but no explanation why actual payments fell short.
Internal Dispute Resolution (IDR) procedure - Stage 1 complaint sent 22 May because no reason for shortfall in payments was provided in the Scheme Administrators response on 21 May
18 June. Response from MyCSP confirmed that payments were less than they should be.  Quotations from the response:
1) 'which appears to be the result of an administrative oversight when finalising your retirement benefits' and
2) '....I [complaint manager] have escalated this matter with the team again in order to expedite a resolution for you...'
At this point I thought the matter was resolved
July and August - more e-mails and phone calls but shortfall in pension payment not resolved. 

Complaint to Scheme Manager (Cabinet Office) under stage 2 of the complaints procedure - sent e-mail on 9 Sep because shortfall in payment not addressed.

9 October response from MyCSP stating how they calculated the inflation increase for the current financial year.  But the inflation adjusted value is less than the value quoted in the quotation and finalisation statement.  No explanation why this is the case.

Complaint to Scheme Manager (Cabinet Office) under stage 2 of the complaints procedure - sent e-mail on 9 Oct asking MyCSP to explain why the inflation adjusted pension is less that the value in the quotation.  Auto acknowledged but no response to date (14 Nov 24).

10 October  - Complaint Form and supporting information sent to Pensions Ombudsman.  Acknowledgement stated that a response should be due in 20 days.  Having checked, the Ombudsman's automated message on their phone line says they're running late due to the volume of complaints. 

Complaint to Scheme Manager (Cabinet Office) under stage 2 of the complaints procedure - sent via on-line MyCSP form on 12 Nov 24 requesting an explanation why shortfall has not been resolved.  Submission acknowledged but too early for a response.

So there it is; I'm taking MyCSP responses to date as refusal to pay the correct amount.

FIREDreamer

Some ball park numbers might help here to judge whether the differences are rounding issues or several hundred pounds a month which would obviously be a bit odd. Was the pension reduced because you took tax free cash maybe?

Marcon

Emerit said:

Thank you for the comments.  Clarifications and a little more detail as follows:
In October 2023, MyCSP (My Civil Service Pension) was notified of my intention to retire in January 2024 - 4 mths notice normally required so I expected a delay in the pension being paid - fair enough?
1st quotation received 28 Dec 2023 - way off the mark; I sent it back to MyCSP pointing out their error.
2nd quotation received Jan 24- I accepted the quotation
3rd quotation received in March - MyCSP told me there was an error in their calculation.  I accepted the quotation.  

Payments commenced in April 24 - less that was stipulated in any of the quotations.
Following many e-mails and telephone calls, the first 'formal' complaint sent to Scheme Administrator 01 May 24.
21 May, MyCSP issue Pension Finalisation Statement (values as per their 3rd Quotation) but no explanation why actual payments fell short.
Internal Dispute Resolution (IDR) procedure - Stage 1 complaint sent 22 May because no reason for shortfall in payments was provided in the Scheme Administrators response on 21 May
18 June. Response from MyCSP confirmed that payments were less than they should be.  Quotations from the response:
1) 'which appears to be the result of an administrative oversight when finalising your retirement benefits' and
2) '....I [complaint manager] have escalated this matter with the team again in order to expedite a resolution for you...'
At this point I thought the matter was resolved
July and August - more e-mails and phone calls but shortfall in pension payment not resolved. 

Complaint to Scheme Manager (Cabinet Office) under stage 2 of the complaints procedure - sent e-mail on 9 Sep because shortfall in payment not addressed.

9 October response from MyCSP stating how they calculated the inflation increase for the current financial year.  But the inflation adjusted value is less than the value quoted in the quotation and finalisation statement.  No explanation why this is the case.

Complaint to Scheme Manager (Cabinet Office) under stage 2 of the complaints procedure - sent e-mail on 9 Oct asking MyCSP to explain why the inflation adjusted pension is less that the value in the quotation.  Auto acknowledged but no response to date (14 Nov 24).

10 October  - Complaint Form and supporting information sent to Pensions Ombudsman.  Acknowledgement stated that a response should be due in 20 days.  Having checked, the Ombudsman's automated message on their phone line says they're running late due to the volume of complaints. 

Complaint to Scheme Manager (Cabinet Office) under stage 2 of the complaints procedure - sent via on-line MyCSP form on 12 Nov 24 requesting an explanation why shortfall has not been resolved.  Submission acknowledged but too early for a response.

So there it is; I'm taking MyCSP responses to date as refusal to pay the correct amount.

Dear Scheme Member

Here is a brick wall. Please bang your head on it repeatedly.


OP - not surprised you're frustrated, given the above. The unhappy reality is that you now have to wait - an all too common situation in pensions.

FIREDreamer said:

Some ball park numbers might help here to judge whether the differences are rounding issues or several hundred pounds a month which would obviously be a bit odd. Was the pension reduced because you took tax free cash maybe?

OP gave it in the first post:

Emerit said:

I retired in January this year (2024).  On their 3rd attempt, I accepted the Civil Service Pension (CSP) pension quotation; £2,095/annum higher than their original quotation!  I dread to think how many people have accepted a low quotation.
Ten months on, and CSP are paying pension that falls short of the quotation (I'm down about £400/mth).  

That's one hell of a rounding error!

FIREDreamer

Marcon said:

Emerit said:

Thank you for the comments.  Clarifications and a little more detail as follows:
In October 2023, MyCSP (My Civil Service Pension) was notified of my intention to retire in January 2024 - 4 mths notice normally required so I expected a delay in the pension being paid - fair enough?
1st quotation received 28 Dec 2023 - way off the mark; I sent it back to MyCSP pointing out their error.
2nd quotation received Jan 24- I accepted the quotation
3rd quotation received in March - MyCSP told me there was an error in their calculation.  I accepted the quotation.  

Payments commenced in April 24 - less that was stipulated in any of the quotations.
Following many e-mails and telephone calls, the first 'formal' complaint sent to Scheme Administrator 01 May 24.
21 May, MyCSP issue Pension Finalisation Statement (values as per their 3rd Quotation) but no explanation why actual payments fell short.
Internal Dispute Resolution (IDR) procedure - Stage 1 complaint sent 22 May because no reason for shortfall in payments was provided in the Scheme Administrators response on 21 May
18 June. Response from MyCSP confirmed that payments were less than they should be.  Quotations from the response:
1) 'which appears to be the result of an administrative oversight when finalising your retirement benefits' and
2) '....I [complaint manager] have escalated this matter with the team again in order to expedite a resolution for you...'
At this point I thought the matter was resolved
July and August - more e-mails and phone calls but shortfall in pension payment not resolved. 

Complaint to Scheme Manager (Cabinet Office) under stage 2 of the complaints procedure - sent e-mail on 9 Sep because shortfall in payment not addressed.

9 October response from MyCSP stating how they calculated the inflation increase for the current financial year.  But the inflation adjusted value is less than the value quoted in the quotation and finalisation statement.  No explanation why this is the case.

Complaint to Scheme Manager (Cabinet Office) under stage 2 of the complaints procedure - sent e-mail on 9 Oct asking MyCSP to explain why the inflation adjusted pension is less that the value in the quotation.  Auto acknowledged but no response to date (14 Nov 24).

10 October  - Complaint Form and supporting information sent to Pensions Ombudsman.  Acknowledgement stated that a response should be due in 20 days.  Having checked, the Ombudsman's automated message on their phone line says they're running late due to the volume of complaints. 

Complaint to Scheme Manager (Cabinet Office) under stage 2 of the complaints procedure - sent via on-line MyCSP form on 12 Nov 24 requesting an explanation why shortfall has not been resolved.  Submission acknowledged but too early for a response.

So there it is; I'm taking MyCSP responses to date as refusal to pay the correct amount.

Dear Scheme Member

Here is a brick wall. Please bang your head on it repeatedly.


OP - not surprised you're frustrated, given the above. The unhappy reality is that you now have to wait - an all too common situation in pensions.

FIREDreamer said:

Some ball park numbers might help here to judge whether the differences are rounding issues or several hundred pounds a month which would obviously be a bit odd. Was the pension reduced because you took tax free cash maybe?

OP gave it in the first post:

Emerit said:

I retired in January this year (2024).  On their 3rd attempt, I accepted the Civil Service Pension (CSP) pension quotation; £2,095/annum higher than their original quotation!  I dread to think how many people have accepted a low quotation.
Ten months on, and CSP are paying pension that falls short of the quotation (I'm down about £400/mth).  

That's one hell of a rounding error!

Sorry, I didn’t spot that. I presume this is a pension issue and not just a wrong tax code issue? It just seems to be a bizarre situation to be in.

xylophone

The unhappy reality is that you now have to wait - an all too common situation in pensions.

https://www.thisismoney.co.uk/money/pensions/article-14077027/I-asked-pension-early-motor-neurone-disease-Railpen-wait-year-CRANE-CASE.html

Emerit

Nothing to do with tax.
Having said that, HMRC were helpful when I told them that the arrears I was paid on 12 April were associated with last year.  When the pension payments are resolved, I'll need to get MyCSP to issue a ' Discrepancy Report' (I hope it wont be another brick wall) so that HMRC allocate the income to last year to avoid creeping into a higher tax bracket for this years total income.