Lump sum reduced

chrishell76

I’ve cashed my largest pension pot on the grounds of serious ill health. They estimated £81k, but have actually paid me £77k.  I’ve enquired with them and they said they’ve miscalculated the tax and they are going to give me a £250 payment for the inconvenience!  This doesn’t make any sense as these payments are tax free up to a million. When I spoke to them they were being very vague, said I had to wait for the letter, but it’s now a week after they sent my payment and still no letter!  Would it be worth getting a solicitor involved or get the help of a pensions expert to put pressure on them as it doesn’t feel right?  Any other suggestions to what they might be on about?  Sorry for the lack of info, but I’m in the same boat without the letter.  TIA

DE_612183

what sort of pension is 100% tax free? - or did you just cash in the 25% tax free amount?

Marcon

chrishell76 said:

I’ve cashed my largest pension pot on the grounds of serious ill health. They estimated £81k, but have actually paid me £77k.  I’ve enquired with them and they said they’ve miscalculated the tax and they are going to give me a £250 payment for the inconvenience!  This doesn’t make any sense as these payments are tax free up to a million. When I spoke to them they were being very vague, said I had to wait for the letter, but it’s now a week after they sent my payment and still no letter!  Would it be worth getting a solicitor involved or get the help of a pensions expert to put pressure on them as it doesn’t feel right?  Any other suggestions to what they might be on about?  Sorry for the lack of info, but I’m in the same boat without the letter.  TIA

I'm so sorry you are having this problem on top of everything else you must have to cope with.

This sounds like a defined contribution plan. Have you previously withdrawn any money from it on the grounds of (for want of a better description) 'non-serious ill health'?

chrishell76

DE_612183 said:

what sort of pension is 100% tax free? - or did you just cash in the 25% tax free amount?

On the grounds of serious ill health (I’m terminal).

Marcon

DE_612183 said:

what sort of pension is 100% tax free? - or did you just cash in the 25% tax free amount?

Full commutation on grounds of serious ill health can be.

DE_612183

chrishell76 said:

DE_612183 said:

what sort of pension is 100% tax free? - or did you just cash in the 25% tax free amount?

On the grounds of serious ill health (I’m terminal).

ah, ok - sorry to hear that - in terms of the 4k difference between the estimate and the actual - have they provided actual figures?

chrishell76

Marcon said:

chrishell76 said:

I’ve cashed my largest pension pot on the grounds of serious ill health. They estimated £81k, but have actually paid me £77k.  I’ve enquired with them and they said they’ve miscalculated the tax and they are going to give me a £250 payment for the inconvenience!  This doesn’t make any sense as these payments are tax free up to a million. When I spoke to them they were being very vague, said I had to wait for the letter, but it’s now a week after they sent my payment and still no letter!  Would it be worth getting a solicitor involved or get the help of a pensions expert to put pressure on them as it doesn’t feel right?  Any other suggestions to what they might be on about?  Sorry for the lack of info, but I’m in the same boat without the letter.  TIA

I'm so sorry you are having this problem on top of everything else you must have to cope with.

This sounds like a defined contribution plan. Have you previously withdrawn any money from it on the grounds of (for want of a better description) 'non-serious ill health'?

It’s a combination of final salary and defined contributions, but literally the DC was only valued at £600 as I left the company within a couple of months of being moved over, so pretty much all of it was from the former.  No I haven’t previously touched it. 

chrishell76

DE_612183 said:

chrishell76 said:

DE_612183 said:

what sort of pension is 100% tax free? - or did you just cash in the 25% tax free amount?

On the grounds of serious ill health (I’m terminal).

ah, ok - sorry to hear that - in terms of the 4k difference between the estimate and the actual - have they provided actual figures?

No they’ve given me very little information, they wouldn’t disclose over the phone and said I had to wait for the letter but like I said it’s been over a week since payment was made. Surely they have a duty for me to have this either before or shortly after payment?

Marcon

chrishell76 said:

Marcon said:

chrishell76 said:

I’ve cashed my largest pension pot on the grounds of serious ill health. They estimated £81k, but have actually paid me £77k.  I’ve enquired with them and they said they’ve miscalculated the tax and they are going to give me a £250 payment for the inconvenience!  This doesn’t make any sense as these payments are tax free up to a million. When I spoke to them they were being very vague, said I had to wait for the letter, but it’s now a week after they sent my payment and still no letter!  Would it be worth getting a solicitor involved or get the help of a pensions expert to put pressure on them as it doesn’t feel right?  Any other suggestions to what they might be on about?  Sorry for the lack of info, but I’m in the same boat without the letter.  TIA

I'm so sorry you are having this problem on top of everything else you must have to cope with.

This sounds like a defined contribution plan. Have you previously withdrawn any money from it on the grounds of (for want of a better description) 'non-serious ill health'?

It’s a combination of final salary and defined contributions, but literally the DC was only valued at £600 as I left the company within a couple of months of being moved over, so pretty much all of it was from the former.  No I haven’t previously touched it. 

Get straight on to the trustees and complain - loudly and bluntly, pointing out that with less than year to live, time is anything but on your side. Forget going via the administrators; they are the ones who have created an issue.

chrishell76

Marcon said:

chrishell76 said:

Marcon said:

chrishell76 said:

I’ve cashed my largest pension pot on the grounds of serious ill health. They estimated £81k, but have actually paid me £77k.  I’ve enquired with them and they said they’ve miscalculated the tax and they are going to give me a £250 payment for the inconvenience!  This doesn’t make any sense as these payments are tax free up to a million. When I spoke to them they were being very vague, said I had to wait for the letter, but it’s now a week after they sent my payment and still no letter!  Would it be worth getting a solicitor involved or get the help of a pensions expert to put pressure on them as it doesn’t feel right?  Any other suggestions to what they might be on about?  Sorry for the lack of info, but I’m in the same boat without the letter.  TIA

I'm so sorry you are having this problem on top of everything else you must have to cope with.

This sounds like a defined contribution plan. Have you previously withdrawn any money from it on the grounds of (for want of a better description) 'non-serious ill health'?

It’s a combination of final salary and defined contributions, but literally the DC was only valued at £600 as I left the company within a couple of months of being moved over, so pretty much all of it was from the former.  No I haven’t previously touched it. 

Get straight on to the trustees and complain - loudly and bluntly, pointing out that with less than year to live, time is anything but on your side. Forget going via the administrators; they are the ones who have created an issue.

I think that’s easier said than done, I can’t seem to get past the robotic admins, and the contacts I have all go to them. The employer the pension was with is a large company and they are using a company called WTW.  Like you said I don’t really need the hassle of sorting this, hence why I was thinking either a solicitor or pensions expert to get on their case. 

chrishell76

Or just seen the Pensions Ombudsman, will this carry any weight if I lodge a complaint with them?