DB transfer value
Discussion
I have a paid up DB pension & I am transferring it out to a SIPP, I asked for a TV & it was ok, so I got IFA to go ahead. It now turns out my old employer is saying that I never asked for a guaranteed TV & the TV they are now quoting is £50K less.
I was in IT so knew little about pensions, how was I to know I was to ask for a GTV?
Is there anything I can do?
I was in IT so knew little about pensions, how was I to know I was to ask for a GTV?
Is there anything I can do?
jonny,
Something looks not right here. A member can ask for a transfer every 12 months and the amount quoted must be guaranteed for 3 months, whereupon it will expire. It looks as if the wrong basis may have been used in your case but you need to check into this. If the wrong basis has been used then you have no entitlement to the higher incorrect amount...there's plenty of legal precedents to support this. Also, it seems you have not actually effected the transfer so technically you haven't actually lost anything.
I strongly suggest that you contact The Pensions Advisory Service (TPAS) and they may suggest that you write/e-mail them with full details and they may then take on the case and fully investigate it for you. If there's anything actually wrong you can make a formal complaint (the pension plan will have a formal procedure for this which you can get a copy of) and you can take things further with TPAS's assistance. I cannot comment on a success rate, but if a genuine mistake has been made then it should be corrected. Possibly you might ask for some form of compensation but the amount will be small.
TPAS's helpline number is 0845 601 2923 and chat this through with them. Their services are completely free.
R.
Something looks not right here. A member can ask for a transfer every 12 months and the amount quoted must be guaranteed for 3 months, whereupon it will expire. It looks as if the wrong basis may have been used in your case but you need to check into this. If the wrong basis has been used then you have no entitlement to the higher incorrect amount...there's plenty of legal precedents to support this. Also, it seems you have not actually effected the transfer so technically you haven't actually lost anything.
I strongly suggest that you contact The Pensions Advisory Service (TPAS) and they may suggest that you write/e-mail them with full details and they may then take on the case and fully investigate it for you. If there's anything actually wrong you can make a formal complaint (the pension plan will have a formal procedure for this which you can get a copy of) and you can take things further with TPAS's assistance. I cannot comment on a success rate, but if a genuine mistake has been made then it should be corrected. Possibly you might ask for some form of compensation but the amount will be small.
TPAS's helpline number is 0845 601 2923 and chat this through with them. Their services are completely free.
R.
jonny996 said:
it is all within the 3 months, they are saying the original was not a GTV just a TV
That sounds odd. When you request a DB TV the value & generate transfer forms, every value I have seen has been guaranteed for 3 months. Thoses that are not guaranteed are usually DC schemes. Is there any chance that the original scheme closed & you have part DB & part DC?
Nope, without shedding to much light this was a fully funded final salary staff pension in one of the big financial firms. They
Are saying that the to I got in February was high due to guilt bonds being good at that time, even the Ifa I have doing the transfer is a bit confused as to why they gave me a tv but not a gtv.
I have complained and it is going to the trustees to see what they think, but there current stance is they do not give gtv unless specifically asked for and they do state in the small print that the to is just an illustration not a gtv.
This stinks to me, why bother quoting if it is not guaranteed
Are saying that the to I got in February was high due to guilt bonds being good at that time, even the Ifa I have doing the transfer is a bit confused as to why they gave me a tv but not a gtv.
I have complained and it is going to the trustees to see what they think, but there current stance is they do not give gtv unless specifically asked for and they do state in the small print that the to is just an illustration not a gtv.
This stinks to me, why bother quoting if it is not guaranteed
Transfer values are always changing, a value can be guaranteed but only for so long - are you a deferred member? The Pensions Regulator today publishes its Annual Defined Benefit Funding Statement (the excitement and anticipation is hanging heavy in the air here), setting out some key messages for Defined Benefit schemes undertaking valuations. It probably won't change your experience, but it might give you some ammo/insight before going back to the trustees?
jonny,
From your latest post, there seems even more reason to get in contact with The Pensions Advisory Service. If you're getting ideas about taking a complaint to the Pensions Ombudsman you'll have to go through TPAS first anyway because the PO will not take on a case until TPAS's services have been used
R.
From your latest post, there seems even more reason to get in contact with The Pensions Advisory Service. If you're getting ideas about taking a complaint to the Pensions Ombudsman you'll have to go through TPAS first anyway because the PO will not take on a case until TPAS's services have been used
R.
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