Annuity Quotation and provider misplacing paperwork

Salsa2006

Hello,

I wondered if anyone else has experienced the same situation as me. In June I arranged with my pension provider Royal London to take my tax free allowance and the balance to be paid as an annuity via Standard Life. I was advised that it would take between 8 - 12 weeks to set up. All the paperwork was returned within one week to enable to the 14 day quotation rate to be honoured. At the end of September (15 weeks) I contacted Royal London who then advised although they had received my completed forms from Standard life, they could not 'locate' my Election of Benefits form so had not progressed the application. They advised I had to complete a further EofB form. The annuity has now been actioned but at a reduced rate from the original quotation agreed. I feel this is unacceptable. The error is fully on their part, and potentially I have also lost out on 2 months pension payments. Has anyone else experienced this poor level of service. Is there any form of redress I can take. Any information and advice would be most helpful. Thank you.

Marcon

Can you demonstrate that they received the form when you say you sent it? It would be particularly helpful if you have a covering email or letter listing the documents you sent originally, ideally with an answering acknowledgement that these had been received.

Salsa2006

Thank you for your quick response. Unfortunately all I have is my photocopies of the forms I sent back together with the date I posted them. During the phone call whilst setting up the policy they advised me to just to post it back as soon as possible. They also stated that it was company policy that we wouldn't receive any further correspondence from them, or hear from them again until they were ready to transfer the payment to my bank. With hindsight I probably should have sent it back registered post, or chased sooner, but I took them at their word that this was their standard practice. Best wishes.

DRS1

Are you using a broker to organise the annuity?

Back in 2024 I used Retirement Line to set up an annuity with Standard Life. At the time I was told it would take 7 weeks to do it. After 7 weeks of hearing nothing I called Retirement Line and there was some issue of someone (I am guessing it was Standard Life) not having done anything. I wasn't asked for any more papers but Retirement Line were able to ensure that the original quote was honoured and its validity period was extended. I suspect I would not have got that outcome if I had been dealing direct with the insurance companies. Then again maybe annuity rates were going up at the time (That's just me being suspicious. I was pleased with the outcome at the time.)

QrizB

Then again maybe annuity rates were going up at the time

I think rates are generally going up again now? See for example the chart here or at the bottom of the page here.

Which makes the OPs report that theirs has fallen seem a bit odd.

dunstonh

 I contacted Royal London who then advised although they had received my completed forms from Standard life, they could not 'locate' my Election of Benefits form so had not progressed the application. 

I've done lots of annuities and transfers from RL but never needed an election of benefits form. Typically, the phrase "election of benefits" is used with defined benefit schemes rather than personal pensions.

There is another issue here, as Royal London wouldn't just stop the process. They would inform the annuity provider, who would in turn inform the broker or IFA. The broker or IFA would then arrange the form to be given to them and then for you to complete it.

If the form had been completed but mislaid by Royal London, then the broker IFA would supply them with their copy of it.

The annuity has now been actioned but at a reduced rate from the original quotation agreed. I feel this is unacceptable.

What does your IFA or broker say about this?

 The error is fully on their part, and potentially I have also lost out on 2 months pension payments. 

Are you sure the error is with RL?

Was there an election of benefits form to begin with?

When RL told the broker or IFA that they couldn't proceed. What action did they take?

Unfortunately all I have is my photocopies of the forms I sent back together with the date I posted them.

That's fine. They would have accepted the copy of the election of benefits form if you've taken it. If there is no election of benefits form in those photocopies, it suggests there wasn't one to begin with.

Marcon

I've done lots of annuities and transfers from RL but never needed an election of benefits form. Typically, the phrase "election of benefits" is used with defined benefit schemes rather than personal pensions.

Surely the existence of that form gives the lie to it being a personal pension?

Sounds more like a buy out policy, possibly with a Guaranteed Annuity Rate at a specified age which might become of less value once OP is beyond that age, which could also explain the curious drop in their annuity rate at a time when rates are generally rising.

Edit - just looked at OP's previous post. It is indeed a S32, not a personal pension.

Marcon

https://forums.moneysavingexpert.com/discussion/comment/82168730#Comment_82168730

You have photocopies, which is excellent news!

You might find it easiest to get in touch with MoneyHelper https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-problems

and send them copies of these, with a summary of what has happened (your opening post is likely to be a good starting point for them), and ask for their advice on how to proceed to ensure you aren't disadvantaged if, as you believe, you have 'done everything right' and the (in)actions of some third party have caused you actual financial loss. Their service is free and they have some truly helpful people who are likely to be best placed to deal with something you could struggle to get to grips with, however extensive and well-intentioned the replies on this forum.

DRS1

Sounds more like a buy out policy, possibly with a Guaranteed Annuity Rate at a specified age which might become of less value once OP is beyond that age, which could also explain the curious drop in their annuity rate at a time when rates are generally rising.

Interesting point. Would certainly explain the drop.

It may well be totally irrelevant to the OP because it did not involve Royal London or Standard Life but when I got a quote for an annuity from a pension which had a GAR at 65 the GAR quote had a longer life than the "normal" quotes. I believe it lasted for 6 months so I could in theory have accepted it after I reached 65.

dunstonh

Surely the existence of that form gives the lie to it being a personal pension?

<snip>

Edit - just looked at OP's previous post. It is indeed a S32, not a personal pension.

ahh, that is where I thought it was going to go in the conversation.

I suspect that the process used in this case wasn't via an IFA/broker. At least not as sense most would consider.

Royal London plans with safeguarded benefits use a third-party broker called Hub. Hub handles the open market option and liaises with Royal London to get the transfer value and any uplift needed in the transfer value to meet the safeguarded benefit. Hub effectively does what the broker/IFA would do.