Pensions are financial benefits often paid over a regular, fixed period to retired employees of an organization as compensation for past employment with that organization.
The two most common pension types are called a defined-benefit plan and a defined contribution plan. Both plans are paid out in retirement, but they differ in the formulas used to define contributions and payouts.
Sometimes, the initial arrangement does not go according to plan, and the pension beneficiaries might lose their pension resulting in a mis-sold financial product. Thankfully it is possible to reclaim money for mis-sold investments like this: pension compensation.
With a pension compensation, a pensioner can get back to the position they’d be in they hadn’t opted for the failed pension arrangement.
What To Expect When You Need Pension Compensation
Mis-selling investments like mis-sold pensions can occur even with the best pension providers. If you happen to find yourself in such a situation, your first step should be to contact your pension provider to clarify the turn of events.
For record purposes, ensure that your complaint is in writing, and you also want to the specifics of your complaint right: who you spoke to and when you spoke to them. However, this doesn’t always solve the issue.
The good news is that if you contracted a regulated pension or annuity provider in the UK or your investments are managed by UK regulated firms; you can get some pension compensation from the Financial Services Compensation Scheme (FSCS).
The FSCS is an organization set up to provide free, self-regulating service that provides solutions to persons who are victims of financial mis-selling.
Thankfully, the FSCS provides different levels of compensation that are based on the investments made. Naturally, compensation caps and factors are determining what is paid as compensation. That said, the FSCS also doesn’t protect defined benefit pensions as that is the responsibility of the Pension Protection Fund.
The FSCS is responsible for investigating complaints or disputes about pension payments. They do this by impartially assessing the facts of the situation before arriving at a decision. Here are some of the things they might consider:
- The length of time taken
- Possible negligence of duty
- Disobedience of the rules of the pension scheme or the law
- Not keeping a promise
- Providing inaccurate or ambiguous information
- Wrong decision making
Once you are in the clear, you are then eligible for pension compensation. However, the amount payable as pension compensation depends on the following factors:
- Tax relief
Contact us for a free case review
Did you know you could be entitled to up to £350,000 compensation if you were mis-sold a pension? Well, now you know. You may also wish to know that about a third of UK pensions have been mis-sold. So, if you think yours may be one of them, do not hesitate to contact our no win, no fee solicitors. We’ll review your case at zero costs and let you know if you’re eligible for a compensation or not. Call us at 0800 060 8855 or check your eligibility right away by answering a few simple questions online.