Lump sum reduced

DRS1

See if you can get them to email the letter to you.  Some of these places have secure ways to do that.  Without the letter you are not going to know what the problem was.  Maybe it was just a miscalculation of the amount (nothing to do with tax) - it happens.

Marcon

chrishell76 said:

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 Have you previously withdrawn any money from it on the grounds of (for want of a better description) 'non-serious ill health'?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

Possible ways to find out:

• have a look at the latest 'Summary Funding Statement' if you can lay hands on it, or there is a website for the scheme which enables you to download it. That will have the names of the trustees, as would the annual accounts
• ring HR (assuming the company is still trading) and explain you need to contact the trustees of the DB scheme - and make sure HR knows why
• have a look on https://www.gov.uk/get-information-about-a-company and see if there is a company called [name of employer] pension trustees' or similar - or PM me with the name of the company and I'll happily have a look to see if I can find anything useful.

PO is going to be far too slow - this needs urgent action.

Dazed_and_C0nfused

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

If you check your Personal Tax Account you may well be able to see some (limited) information regarding the payment.

Might just be taxable pension, payment date, tax code operated and tax deducted but could be useful?

Marcon

OP - I've sent you a PM with details of the two trustee directors to whom I suggest you write + a draft letter for you to send them. I hope this helps.

Brie

If you go on the company website (employer's) see if you can find the name of the pension scheme trustees.  Also find the name of the CEO and head of HR.  Write to all of them and tell them to get this sorted now.

Random query - did you work for a bank?  Do you need the assistance (with anything) of BWC? (Bank Worker's Charity)

Best of luck on sorting things and I hope it gets resolved quickly.  If it doesn't enjoy the things that do go well. 

dunstonh

I don't want to go against what the others have said, but just to add a bit of caution.

Its only been one week since payment and the letter is on its way that will explain it.    That was probably sent second class, and it's very normal nowadays for money to arrive before the post due to faster payment methods.

The pension ombudsman wont look at case about something that has a letter on its way about a payment made just a week ago.   Nor would a solicitor.   I know time is not on your side but you do need a little more than a week before doing the things suggested.

Marcon

dunstonh said:

I don't want to go against what the others have said, but just to add a bit of caution.

Its only been one week since payment and the letter is on its way that will explain it.    That was probably sent second class, and it's very normal nowadays for money to arrive before the post due to faster payment methods.

The pension ombudsman wont look at case about something that has a letter on its way about a payment made just a week ago.   Nor would a solicitor.   I know time is not on your side but you do need a little more than a week before doing the things suggested.

SIH cases should be top of the list for any administrator/body of trustees, so in my book a week is more than enough time. Telling someone to 'wait for a letter', rather than giving them a ring to update them, does not impress.

The correct route is a complaint to the trustees - now. The 'wait and see' approach isn't going to cut it. Every day counts.

Even if payment, letter etc is on the way (and I'd hope nobody would be saving by using second class post when dealing with a SIH), the trustees need to be aware how this has been handled. Trustees can delegate - but they can't abdicate.

chrishell76

Brie said:

If you go on the company website (employer's) see if you can find the name of the pension scheme trustees.  Also find the name of the CEO and head of HR.  Write to all of them and tell them to get this sorted now.

Random query - did you work for a bank?  Do you need the assistance (with anything) of BWC? (Bank Worker's Charity)

Best of luck on sorting things and I hope it gets resolved quickly.  If it doesn't enjoy the things that do go well. 

Thanks for your wishes. No, it’s not a bank. I’ve now got the contact details for the trustees, just a shame it’s snail mail but hopefully it will have some effect as I believe that my ex employer probably won’t be aware of this and it’s a cockup by the third party.

chrishell76

dunstonh said:

I don't want to go against what the others have said, but just to add a bit of caution.

Its only been one week since payment and the letter is on its way that will explain it.    That was probably sent second class, and it's very normal nowadays for money to arrive before the post due to faster payment methods.

The pension ombudsman wont look at case about something that has a letter on its way about a payment made just a week ago.   Nor would a solicitor.   I know time is not on your side but you do need a little more than a week before doing the things suggested.

Yes I get that, but I find it just slack that the info hasn’t been communicated and as of today still hasn’t 7 days after payment.  They would’ve known about the issue in advance of sending the payment so there’s really no excuse. 

chrishell76

Finally received today and it’s as they indicated but still doesn’t answer my question why tax would be involved. They basically said:-

“Upon review, we have identified an issue with the calculation of your benefits whereby the amount of tax free cash was overstated in your original quotation.  We are investigating the cause of this error and wish to take this opportunity to apologise and issue you with an additional payment of £250 for any inconvenience and distress caused”

Someone make it make sense!?