£130,874.44 received in compensation for a mis-advised final salary transfer
Mr G joined the Coal Board in August 1966 as a ‘trainee’ aged 15 years.
15 years later in May 1981, he achieved ‘Grade’ and as such qualified for ‘British Coal Staff Superannuation (Pension) Scheme’ .
Mr G worked at the Coal Board for a further 6 years before being made redundant in August 1987. However, his pension scheme was credited for a full 13 years thanks to his previous pre ‘Grade’ role(s).
Mr G had paid £4,363.01 into the scheme.
Just over a year later, in November 1988, Desmond Dunkley and Associates (NM Schroder Financial Management) requested ‘deferred benefits’ and ‘cash equivalent transfer value’ (CETV) from Mr G’s pension scheme, as they believed a ‘transfer out’ of the pension scheme was in Mr G’s best interests.
Harry Hewitt, Independent Financial Adviser provided a letter of authority from Mr G to request a transfer value from the pension scheme in January 1989.
The deal was quickly progressed and Mr G met with Financial Advisers, Desmond Dunkley and Associates at the beginning of April 1989. Transfer forms were completed and signed. This included NM Schroder Personal Pension Scheme application.
10 days later a cheque was raised for the ‘transfer out’ value (CETV) of £27,424.08 which was sent to Desmond Dunkley Associates. The funds were then transferred to a personal pension with Friends Provident. NB, Friends Provident changed its name to Friends Life in 2011 and was subsequently bought by Aviva in 2015.
Autumn 2014, some 26 years on...
Mr G enquired with Money and Me Claims online, after a discussion with a friend and ex-work colleague. After comparing the amount of pension each was receiving, it transpired that, despite having less service with British Coal, his friend was receiving approximately twice as much retirement income from his British Coal pension than Mr G was receiving from his Friends Provident pension.
Realising that the advice to transfer his British Coal pension had clearly not been in his best interests, Mr G decided to instruct Money and Me Claims to make enquiries and pursue a claim on his behalf.
Initially, Aviva refused to accept that Mr G had been mis-advised, denied liability for his losses and therefore would not compensate him.
However, thanks to our experience, persistence and knowledge, Aviva finally made an offer to Mr G in January this year. The gross offer of £184,898.77 included an additional £2,000 goodwill gesture to compensate Mr G for the way Aviva had initially mishandled the case and the time it had taken Aviva to conclude matters. The actual payment made to Mr G was reduced to £130,874.44 allowing for the deduction of tax that he would have paid had the gross value been placed into a new pension arrangement and our fees.
Over a three-year period, Money and Me Claims repeatedly wrote to and liaised with Aviva, Friends Life, Desmond Dunkley, the British Coal Staff Superannuation Scheme and the Financial Ombudsman Service (FOS), reviewing over 60 different transactions. Our expertise and persistence finally paid off and resulted in financial justice for Mr G in January 2019.