Basics and responsibilities

SuperKenny

Hi, I’d say I am relatively financially savvy, however when it’s comes to pensions I am lost. I wonder if anyone could help me understand some of the basics. 

On Martins show on 28 Jan he explains the benefits of pensions. Got it. He then goes onto tracking

Tracking / Role of Administrator companies: most folk while change job and pension multiple times this brings how to track. If I understand correctly an Administation company is the interconnect between the individual and the pension. If the administrator changes 5x, is it not their responsibility to inform the i individual on changes.

If I compare this to banking, if I had 50k in Bank x and they were bought to Bank y. I would get numerous notifications. I have no choice but they would keep the me informed. With pensions it appears changes can occur without any communication. To me this leads to mistrust.

As an example later in the show They mention someone how “found” a 100 k pension. I wonder how many of these are not found? Do the administrators or trustees not have any responsibility here.

Overall in terms of pension I get the financial aspect, but the thought of having to chasing around to gain access weighs heavy. Could any try to explain.

MeteredOut

Pension companies are much better now in sending out annual letters to their policy holders than they were in the past, but I suspect, in the majority of cases, the reasons for pensions getting "lost" is people not updating their address with their provider when they move.

Trustees do have responsibilities, but so do individuals to keep financial institutions updated.

SuperKenny

Thanks for the response, but to be honest it’s a long way from what I experience. 

I have two DB schemes. For both I do not get any form of “routine” update. Both have a portal but the detail in the portal is dated. ( I have to contact them yearly to get an updated value). Both recently had a change of Administrators without any communication.

it’s not just me from the Martin Lewis show and individual located 100k they were not aware of…. How is this happening?

SVaz

Heh, you should try being ex Military,  you have to put in a claim for your pension 3 months before it’s due and they like you to have the letter from when you left service, in my case that was 1995 ( yes I still have the letter) .
If you don’t claim then you get nothing,  they don’t even attempt to track you down, so all those who’ve got MH problems/ had a stroke etc.  never see a penny unless they have someone to advocate for them.
It’s truly disgusting. 

Flugelhorn

SVaz said:

Heh, you should try being ex Military,  you have to put in a claim for your pension 3 months before it’s due and they like you to have the letter from when you left service, in my case that was 1995 ( yes I still have the letter) .
If you don’t claim then you get nothing,  they don’t even attempt to track you down, so all those who’ve got MH problems/ had a stroke etc.  never see a penny unless they have someone to advocate for them.
It’s truly disgusting. 

NHS is the same - they like 4 months, you have to claim and get someone to sign to say you are who you say you are  and they don't tell you how much you are going to get until you actually apply - all a bit of guess work. 

BikingBud

SVaz said:

Heh, you should try being ex Military,  you have to put in a claim for your pension 3 months before it’s due and they like you to have the letter from when you left service, in my case that was 1995 ( yes I still have the letter) .
If you don’t claim then you get nothing,  they don’t even attempt to track you down, so all those who’ve got MH problems/ had a stroke etc.  never see a penny unless they have someone to advocate for them.
It’s truly disgusting. 

Not to sidetrack the OP's discussion, however, it is not that onerous and getting nothing unless you claim is common across probably all pensions, even SP.  But do appreciate the number of veteran's that might be unaware of any preserved pension and or the route to claiming. Hence the Forces Pension Society campaign: 

Help us unite Veterans with their pensions!

Tracking people many years after they left the service might also be difficult but following the same principle as for the Child Trust Fund, via NI number might enable allocation.

I would encourage anybody with any service in HM Forces to check for themselves and share this far and wide.

Silvertabby

BikingBud said:

SVaz said:

Heh, you should try being ex Military,  you have to put in a claim for your pension 3 months before it’s due and they like you to have the letter from when you left service, in my case that was 1995 ( yes I still have the letter) .
If you don’t claim then you get nothing,  they don’t even attempt to track you down, so all those who’ve got MH problems/ had a stroke etc.  never see a penny unless they have someone to advocate for them.
It’s truly disgusting. 

Not to sidetrack the OP's discussion, however, it is not that onerous and getting nothing unless you claim is common across probably all pensions, even SP.  But do appreciate the number of veteran's that might be unaware of any preserved pension and or the route to claiming. Hence the Forces Pension Society campaign: 

Help us unite Veterans with their pensions!

Tracking people many years after they left the service might also be difficult but following the same principle as for the Child Trust Fund, via NI number might enable allocation.

I would encourage anybody with any service in HM Forces to check for themselves and share this far and wide.

The FPS are doing their best, but there are at least 14,000 pensioners (or their widows) out there who have not claimed their deferred benefits at 60/65/SPA.

No point in writing to them if the last address on record is a married quarter or a barrack block.

Biggest problem is with the older veterans, who should have claimed their pensions at 60.  Many mistakenly believe that they have no entitement to a pension, because 'the barrack room lawyer said so'. 

A common misunderstanding concerns the Resettlement Grant, being a tax free lump sum paid to those who completed  at least 12 years service (but less than the service required to qualify for an immediate pension).  Many just assumed that this payment was in lieu of pension rights.  Clue: It wasn't.

Marcon

SuperKenny said:

Thanks for the response, but to be honest it’s a long way from what I experience. 

I have two DB schemes. For both I do not get any form of “routine” update. Both have a portal but the detail in the portal is dated. ( I have to contact them yearly to get an updated value). Both recently had a change of Administrators without any communication.

Private sector DB schemes don't issue routine updates (some public sector schemes do) after you have left. Most won't do so until you are within a short time of reaching retirement, unless you ask - and even then you could well just get the same statement you got when you left active membership, with a note indicating how the pension will increase between the time you left and when you reach the scheme's normal retirement age. They certainly won't normally volunteer updated transfer values, which are of little point unless you are seriously considering transferring out. Members often don't know that DB transfer values fluctuate constantly - a fluctuation which has absolutely no bearing on the promised pension - and judging by the posts on this forum, cause utter consternation in the process!

SuperKenny said:

If I compare this to banking, if I had 50k in Bank x and they were bought to Bank y. I would get numerous notifications. I have no choice but they would keep the me informed. With pensions it appears changes can occur without any communication. To me this leads to mistrust.

As an example later in the show They mention someone how “found” a 100 k pension. I wonder how many of these are not found? Do the administrators or trustees not have any responsibility here.

Overall in terms of pension I get the financial aspect, but the thought of having to chasing around to gain access weighs heavy. Could any try to explain.

You should be getting a Summary Funding Statement more or less annually in respect of your DB schemes, which will include current contact details for the administrators. If you're not, have you ensured the schemes have current contact details for you?

There will be a forwarding mechanism in place between the old and new administrators, so there is usually no need to write to members simply to tell them about this - it can wait until the next routine newsletter/SFS.

DC schemes are required to issue annual updates, which always include current contact details. Again, if you're not getting them, that could be down to you not updating your details.

Trustees try to trace members who have gone AWOL because the member has failed to keep their contact details updated, but the member has responsibility for doing that. Trustees and administrators rely on members to do so, because attempts to trace aren't always successful. 

MallyGirl

Marcon said:

SuperKenny said:

Thanks for the response, but to be honest it’s a long way from what I experience. 

I have two DB schemes. For both I do not get any form of “routine” update. Both have a portal but the detail in the portal is dated. ( I have to contact them yearly to get an updated value). Both recently had a change of Administrators without any communication.

Private sector DB schemes don't issue routine updates (some public sector schemes do) after you have left. Most won't do so until you are within a short time of reaching retirement, unless you ask - and even then you could well just get the same statement you got when you left active membership, with a note indicating how the pension will increase between the time you left and when you reach the scheme's normal retirement age. They certainly won't normally volunteer updated transfer values, which are of little point unless you are seriously considering transferring out. Members often don't know that DB transfer values fluctuate constantly - a fluctuation which has absolutely no bearing on the promised pension - and judging by the posts on this forum, cause utter consternation in the process!

SuperKenny said:

If I compare this to banking, if I had 50k in Bank x and they were bought to Bank y. I would get numerous notifications. I have no choice but they would keep the me informed. With pensions it appears changes can occur without any communication. To me this leads to mistrust.

As an example later in the show They mention someone how “found” a 100 k pension. I wonder how many of these are not found? Do the administrators or trustees not have any responsibility here.

Overall in terms of pension I get the financial aspect, but the thought of having to chasing around to gain access weighs heavy. Could any try to explain.

You should be getting a Summary Funding Statement more or less annually in respect of your DB schemes, which will include current contact details for the administrators. If you're not, have you ensured the schemes have current contact details for you?

There will be a forwarding mechanism in place between the old and new administrators, so there is usually no need to write to members simply to tell them about this - it can wait until the next routine newsletter/SFS.

I certainly don't get anything annually from my DB scheme - admin by Barnett Waddingham. They have my address as they have sent comms around GMP equalisation. If I ask then they do send some sort of quote but couched in so many caveats that it is pretty useless. The website only supports the DB part of my pension there, not the DC (under 25). I'll be glad when it gets to the point of paying out as that is the only way I will get a clear picture of what I get. Luckily it is not a major part of my retirement plan.

luvchocolate

A pension company found me through my NI no....it was a very small one .
Ii had remarried so my name changed...moved house many times and lived in the middle east for 8 years. 
Amazingly!

Marcon

MallyGirl said:

Marcon said:

SuperKenny said:

Thanks for the response, but to be honest it’s a long way from what I experience. 

I have two DB schemes. For both I do not get any form of “routine” update. Both have a portal but the detail in the portal is dated. ( I have to contact them yearly to get an updated value). Both recently had a change of Administrators without any communication.

Private sector DB schemes don't issue routine updates (some public sector schemes do) after you have left. Most won't do so until you are within a short time of reaching retirement, unless you ask - and even then you could well just get the same statement you got when you left active membership, with a note indicating how the pension will increase between the time you left and when you reach the scheme's normal retirement age. They certainly won't normally volunteer updated transfer values, which are of little point unless you are seriously considering transferring out. Members often don't know that DB transfer values fluctuate constantly - a fluctuation which has absolutely no bearing on the promised pension - and judging by the posts on this forum, cause utter consternation in the process!

SuperKenny said:

If I compare this to banking, if I had 50k in Bank x and they were bought to Bank y. I would get numerous notifications. I have no choice but they would keep the me informed. With pensions it appears changes can occur without any communication. To me this leads to mistrust.

As an example later in the show They mention someone how “found” a 100 k pension. I wonder how many of these are not found? Do the administrators or trustees not have any responsibility here.

Overall in terms of pension I get the financial aspect, but the thought of having to chasing around to gain access weighs heavy. Could any try to explain.

You should be getting a Summary Funding Statement more or less annually in respect of your DB schemes, which will include current contact details for the administrators. If you're not, have you ensured the schemes have current contact details for you?

There will be a forwarding mechanism in place between the old and new administrators, so there is usually no need to write to members simply to tell them about this - it can wait until the next routine newsletter/SFS.

I certainly don't get anything annually from my DB scheme - admin by Barnett Waddingham. They have my address as they have sent comms around GMP equalisation. If I ask then they do send some sort of quote but couched in so many caveats that it is pretty useless. The website only supports the DB part of my pension there, not the DC (under 25). I'll be glad when it gets to the point of paying out as that is the only way I will get a clear picture of what I get. Luckily it is not a major part of my retirement plan.

You should be getting a Summary Funding Statement, which gives an overview of the financial health of the scheme (not any personal information). If you aren't, ask why not.