Mis Sold Pension

[Jane Howard]

I believe that I was subject to maladministration / mis sold pension when I moved out of Barclays Final Salary Scheme into its Retirement Investment Scheme (RIS) in 1998. Sedgwick Noble Lowndes (SNL) were commissioned by Barclays at the time to manage the process. SNL produced a glossy brochure which painted a very misleading picture of the benefits of moving to the RIS and a short questionnaire which purported it to be a ‘no brainer’ if you scored less than 60. I scored 56. If only I’d have had access to the internet at the time! I was very naïve and gullible.

 

I have complained to the Pensions Ombudsman who have asked that I make a complaint through the schemes IDRP first before they can investigate. The Ombudsman has acknowledged however that there was an assumption in the process that younger people were likely to be better off in the RIS. The importance, they say, is whether the assumption was reasonable at the time?

 

Please could you help me to tackle this assumption in my letter of complaint. I need some good evidence to prove that my employers assumption was wrong. I was 31 years old, married, with two young children, and in good health. I had at that point worked for the bank for 15 years. 

[ericsbrother]

as they say, you need to complain the the barclays pension trustees first.  the onus of proof lies with them because they introduced you to the other bandits  so all you need to show is what you would have got if you stayed in the scheme and what you will geT now (and can they pay the diference without being forced to) they will know thier figures if you cnat work it out so all you need is your projected or known pension. Do you still work for barclays or are you after a top up for your pension to bring you up to the level you would have had at the time you left Barclays?

[honeybee13]

How much paperwork do you have from 1998, Jane, in particular about the assumption of younger people being better off?

 

As ericsbrother says, you will need to compare the pension the Barclays scheme would have provided with what the RIS is predicting it will provide.

 

Are you claiming against Barclays or Sedgwick Noble Lowndes which became part of Marsh Mercer towards the end of 1998?

 

HB

[Jane Howard]

I have got copies of the brochures that were issued and a copy of the questionnaire. The questionnaire score led people under the age of 34 to move away from the Final Salary scheme. I have got to prove that the assumption they made was not the right one at the time.

My claim is against both companies, I feel that they are equally culpable. 

[honeybee13]

I don't think anyone here will know what the assumptions were if they aren't in the literature you have. They should have been worked out by Sedgwick's actuarial team based on projected investment returns and so on, so it's probably a question for the scheme trustees.

 

HB

[ericsbrother]

the paperwork should give examples, I think that a growth rate of 8% was one of the chosen ones to give figures, there were higher and lower ones but these would appear in the printed forecasts.

so, get your complaint into the Barclays trustees now and they will have to show ther hand if they wnat to deny your claim. For the moment you dont need to hang figures on how much worse off you will be, this is about the advice and how it came about. The Ombudsman wil get all of the numbers later but as they have told you, you need to go through the correct procedure and that will be laid out in the terms of the scheme itself so ask for a copy if you dont have one.

Also answer the other pertinet questions, do you still work for Barclays? what are you after at this time?

[Jane Howard]

I actually left Barclays at the end of 1999 so it is only 15 years service but still it makes a big difference to me. The growth rate used in the projection was 9.5%, which even back then was relatively high risk I think. 

[honeybee13]

Did they only use one interest rate in their assumptions,  Jane?

 

HB

[Jane Howard]

Yes, they only used 9.5%  fund growth rate - expected investment return for the Retirement Investment Scheme. They also used 9.5% annuity purchase rate - assumed to calculate the cost of buying a pension at retirement. They used an assumption on salary growth 7.5% through to retirement. 

[honeybee13]

To be honest, I think you're best going to the IDPR process.  Tell them what your complaint is and let the IDRP do what it's designed to do.

 

The Trustees will look at your complaint in full.

 

HB

[ericsbrother]

There were a large number of cases that went through the Ombudsman that were of a similar nature to your so all you have to do is make your complaint in the correct manner and I'm sure that you will see something to your advantage in around a years time.

The PO was giving you a very strong hint when they told you about using the complaints procedure

[Jane Howard]

Fingers crossed. Thanks for your advice. I've written my letter now. Just to got to wait and hope. 

[honeybee13]

Hi, thank you for the update.

 

What have you said and who have you written to please?

 

HB