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    • jewellery10
    • By jewellery10 16th May 19, 5:02 PM
    • 18Posts
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    jewellery10
    Pensions Mis-selling financial redress
    • #1
    • 16th May 19, 5:02 PM
    Pensions Mis-selling financial redress 16th May 19 at 5:02 PM
    I was mis-sold a private pension in the late 1980s transferring out of a company defined benefit scheme. As part of the pensions mis-selling review in the early 1990s I was given a guarantee that I would not be financially disadvantaged by the mis-sell.

    It is now nearing the time to my retirement date.

    1) How do I go about finding about the processes, procedures and guidelines that govern the personal pension provider to calculate the financial benefits I would have received from my company scheme versus the current private pension?

    2) What data is required to perform the calculations?

    3) Is there a generic software application that is used to calculate and compare the benefits?

    Any guidance from anyone that has gone through this process recently would be appreciated.
Page 1
    • Silvertabby
    • By Silvertabby 16th May 19, 5:20 PM
    • 4,166 Posts
    • 6,408 Thanks
    Silvertabby
    • #2
    • 16th May 19, 5:20 PM
    • #2
    • 16th May 19, 5:20 PM
    I take it that you weren't able to transfer your benefits back into your DB scheme?

    If that's so, then I'm afraid that what you would have received had you remained with your DB scheme is irrelevant. When your complaint was dealt with, your compensation was calculated at that time and X amount of money was put into your DC fund, on the basis that your fund would then buy an annuity comparable with the DB pension you had given up. That was your complaint done and dusted.

    Years later, things have changed. Yes, annuity rates have plummeted, meaning that if you do chose this option your annuity may be less than your DB pension would have been - but there's no point in pondering this issue as your old pension fund is under no obligation to give you a hypothetical quote and, even if they did, you can't re-open your complaint in order to take a second bite of the cherry.

    On the plus side, there's always the (admittedly very slight) possibility that if your pension fund has done extremely well, it may have increased at a higher rate than your deferred DB pension would have done. Plus you now have the 'pension freedom' options which will allow you greater flexibility in the way you access your benefits.
    Last edited by Silvertabby; 17-05-2019 at 11:28 AM.
    • jewellery10
    • By jewellery10 21st May 19, 5:41 PM
    • 18 Posts
    • 0 Thanks
    jewellery10
    • #3
    • 21st May 19, 5:41 PM
    Mis-selling calculations are more complex than perceived
    • #3
    • 21st May 19, 5:41 PM
    The calculation to "compensate" me has not taken place yet. The PPP guarantee is worked out near my retirement date. They see what is in my fund now and what pension it would give me now and then compare it against what my company pension scheme would give me.

    There is also the issue with comparing over/under contributions between the 2 schemes.

    There is the issue that the company pension scheme was contracted out, and the complex rules around GMP (from additional SERPS entitlement) are also in play!
    • Silvertabby
    • By Silvertabby 21st May 19, 5:57 PM
    • 4,166 Posts
    • 6,408 Thanks
    Silvertabby
    • #4
    • 21st May 19, 5:57 PM
    • #4
    • 21st May 19, 5:57 PM
    The calculation to "compensate" me has not taken place yet. The PPP guarantee is worked out near my retirement date. They see what is in my fund now and what pension it would give me now and then compare it against what my company pension scheme would give me.

    There is also the issue with comparing over/under contributions between the 2 schemes.

    There is the issue that the company pension scheme was contracted out, and the complex rules around GMP (from additional SERPS entitlement) are also in play!
    Originally posted by jewellery10
    I have to say - that's unusual. The standard procedure was to calculate the compensation as at the time of the complaints, otherwise the whole sorry saga would have gone on for years.

    I'm assuming that you left your employment/deferred your DB pension benefits before you transferred out, so it's possible that the figures to be used would be from your deferred benefit statement (as at your last day of service) plus whatever indexation rate the scheme uses. Of course, that's if your old pension records are still readily available and haven't been archived. Has your old scheme already been asked for these figures?

    Can you give any more details of your guarantees? Some of the guys who deal with private pensions (my background is LGPS) may be more helpful.
    Last edited by Silvertabby; Today at 8:24 PM.
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