Tricky Pension Situation - Advice needed

[Seagull21]

I am new to the forum and so apologies if this has been covered before.

 

When I left my employer in 1986 the company put me on to Sedgwicks, (now Mercer) who advised me to transfer out of the company final salary scheme and into a section 32 buyout. My final salary pension was planned to provide a pension of £14000 and I was told I could reasonably expect to receive a pension of £28000 by transferring and so I did. The section 32 buyout had a GMP of £2907 which I wasn't aware of at the time.

 

In 1999 I claimed for mis-selling and there was no argument and Sedgwick proposed to add a further £3500 to the fund to compensate me. My former employer would not allow me to re-enter their scheme. I challenged the amount proposed but was told that the calculations were made in accordance with PIA rules and that with several years before my pension was due it was considered sufficient to ensure that the sum available at retirement age would be equivalent to what I would have received had I not transferred out. I had no choice but to accept the amount offered.

 

As I approach retirement age and without any communication from Sedgwick or Mercer since I have now discovered that not only was the amount woefully inadequate but it hasn't even increased the value of my pension beyond the original GMP - in effect I have not been compensated one penny.

 

I have written to Mercer who have told me they have no case to answer and if I am unsatisfied to take it up with the Ombudsman which I am in the process of doing.

 

But, I wonder if anyone else has had similar experience and if they have escalated and what the outcome was. It seems terribly unfair to me. The objective of the original compensation will by no means be achieved and I am severely disadvantaged. I suspect the Ombudsman will not find in my favour and I feel I want to take the matter further but do not know where but it sounds like something which could become terribly expensive and I don't have the means to pursue which in itself feels terribly unfair.

 

Thanks

[Ganymede]

I think you need to speak to a professional financial advisor...

[Seagull21]

I think you need to speak to a professional financial advisor...

 

I'm somewhat reluctant to talk to a professional advisor given that the root cause of this problem was as a consequence of the actions of a very large firm of professional advisors. And an IFA isn't really going to have the expertise or desire to get into the nitty gritty of this I suspect.

 

I was wondering if anyone else had taken a case further than the Ombudsman and if so where and with what result. It's a pretty daunting task to take the Ombusdman/FSA on but given the injustice and impact on my future I feel compelled to do so, but I'm not sure if it's practical

[raydetinu]

suggest you continue with the ombudsman and see what they say.

I did challenge Hambro with my pension, when my employer switched plans and they increased my fund accordingly, but know way of knowing wwheher it was fair.

I converted my mine to an annuity as sonn as possible before I acatully retired to get the best deal, as they are losing value and management charges going up.

[Seagull21]

suggest you continue with the ombudsman and see what they say.

I did challenge Hambro with my pension, when my employer switched plans and they increased my fund accordingly, but know way of knowing wwheher it was fair.

I converted my mine to an annuity as sonn as possible before I acatully retired to get the best deal, as they are losing value and management charges going up.

 

Yes I will although not optimistic of the outcome. I now know my compensation was totally inadequate. A final salary scheme which was guaranteeing me £14000 was transferred into a personal pension which is only forecasting to pay £2900.

 

Anyway I'll wait for the no can help letter from Ombudsman and try to figure it then, certainly not prepared to let it go but don't have the means to really take it anywhere else, hence the original question

 

Cheers!

[honeybee13]

Hello there.

 

Would you mind just clarifying please which ombudsman you're in touch with, fos or pensions. Have you consulted TPAS at all?

 

My best, HB

[Seagull21]

Hello there.

 

Would you mind just clarifying please which ombudsman you're in touch with, fos or pensions. Have you consulted TPAS at all?

 

My best, HB

 

I didn't know about the Pensions Ombudsman, have taken it to the FOS. Looking at the Pensions Ombudsman site they say they can't get involved "if the case is being or has been investigated by another Ombudsman" so I guess that's not an avenue to pursue. Nor was I aware of the TPAS and having had a look there they might be able to help. It does say on their site that they won't if the case has already been dealt with by the Pension Ombudsman but can't see reference to the Financial Ombudsman, so that might be an avenue once I get rejected.

 

Many thanks for alerting me to these services.

 

The one thing I find odd is that I haven't found anyone else that has gone through this. I the late 90's it was a highly publicised issue and I imagine thousands, if not tens of thousands, made claims similar to my own. Those that were as far away from retirement at that time as I was would have been "compensated" using the same formulae which have now been shown to be woefully inadequate. I can only assume that those individuals are unaware of their position or have chosen to simply accept it because they do not believe they have any further redress. In my case I am determined to fight for what I believe to be justice!

[honeybee13]

Hello again.

 

I'm pleased that's given you something to work on and other avenues to pursue. I can't take all the credit, that came from my OH who describes himself as a pensions bore.

 

HB

[raydetinu]

good luck, hope you suceed.

the thing about about most financial dealings is they never tell you the facts up front, projections that they backtrack on, or just use goobledygoog and hope you accept it.