Mis-sold Pension | What is a mis-sold pension? | Pension Mis-selling

Mis-sld Pension Claim

Between 29 April 1988 and 30 June 1994 many members of the public were advised to take out personal pension plans when they were already members of, or had access to, an occupational defined benefit pension scheme. Also, many employees who had preserved pensions with the scheme of a former employer were advised to effect a transfer into a personal pension scheme.

The regulator responsible for overseeing the sale of personal pension plans realised that those advised to take out a personal pension plan in these situations may have lost out financially. They therefore ruled that firms must review the sale of personal pension plans during that period. Those policyholders that were found to have been mis-sold, had to be compensated for any financial loss suffered.

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Using guidelines laid down by the regulator, the firm, which provided the advice, obtains details of the benefits that would have been accrued in the occupational pension scheme and compares them to the potential benefits payable from the personal pension plan, on the assumption that the member paid the same level of contributions as they would have to the occupational scheme. If it shows that the policyholder has lost out by joining the personal pension plan, the firm must make good the financial loss.

This may mean reinstating the policyholder into the occupational pension scheme. If the trustees of the scheme refuse to accept reinstatement, the policyholder must be credited with a one-off contribution into the personal pension plan. Alternatively, a few insurance companies gave a guarantee to review matters when the policy holder reached retirement and, at that time, make good any financial loss that has been suffered.

The review itself began at the end of 1994 and still on-going and it is hoped that this will be completed by 2005/2006. However, firms are only carrying out reviews on those policyholders who requested a review on or before 31 March 2000. If you believe you have been mis-sold a pension and would like your case reviewed, but you have missed this deadline, you should contact the firm who gave you the advice and ask for a review. They may be able to review your case under 'special pensions review procedures'.

How do I know how much am I entitled to?

The review works by comparing what a person might have accrued in an occupational pension as compared to the personal pension they'd been advised to take out. If the former was higher, then the company that sold the pension has been required to make up the difference.

'Which?' said people who have been advised in the past to contract out should contact their pension provider and ask for a personalised statement to compare the projected income from their contracted-out personal pension with the amount they would have received from the State.

Also see: What is a mis-sold personal pension plan? and What are mis-sold SERPS?

How can I start a Mis-sold Pension Claim?

You can start your mis-sold pension claim in 2 ways. You can call our Mis-sold pension helpline on 0845 519 6093 and speak to one of our pension advisors. You can alternatively complete our online enquiry form and one of our advisors will call you back.

Mis-sold Pension - The assessment of your specific case will take a considerable amount of time (Hence our £60 fee). Our Mis-sold pension experts will complete a full fact find with you to establish exactly what the claim is. Once we have completed the Mis-sold Pension fact find your details will then be passed over to one of our claims handlers to start your mis-sold Pension Claim

If we are successful with your case then we will charge you 15% of the total compensation you receive for being Mis sold your pension.

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