01 July 2005
The Pensions Advisory Service (TPAS) has condemned the
reluctance of financial advisers to offer advice to their clients
about the desirability or otherwise of remaining contracted-out of
the State Second Pension (S2P).
In its annual report (published today, 1 July) 'Advising on
Pensions: a report on activities 2004/05", TPAS says it is
experiencing an increase in the number of callers to its helpline
seeking guidance on whether they should contract in or out of the
state system, i.e. build up an entitlement to S2P or opt to forego
this and receive instead a government rebate paid annually into
their personal pension. Most of the calls have arisen as a result
of providers (insurance companies) urging those who are
contracted-out to review their decision but the individuals
concerned have not been able to find anyone who is willing to
advise them definitively what to do.
"We are particularly disappointed", says Chief Executive,
Malcolm McLean, "that where the original decision to opt out was
taken on the recommendation of a financial adviser there is an
unwillingness to accept responsibility for ongoing advice. We
concede this is a tricky decision with financial consequences for
getting it wrong but all the more reason for professional advice to
be made available rather than the client being abandoned and left
to his/her own devices".
The TPAS report outlines the wide range of pension problems that
have been raised with it by the public over the year, mainly
through its Pensions Helpline (over 55,000 calls). A summary report
is also included of the dedicated helpline for women it ran
experimentally for two months during the year. A large increase was
recorded in the number of visitors to the two TPAS websites - up
from 103,000 to 212,000. Over 7,000 complaints were investigated in
total with poor pension administration being the largest cause,
accounting for 29% of all cases. TPAS success rate, measured as a
percentage of complaint cases resolved, remained constant with
previous years at 86%. The report is interspersed with case
examples to illustrate the variety and complexity of the work - and
the results that can be achieved.
Enquiries to Malcolm McLean Direct line: 020 7630 2270
malcolm.mclean@pensionsadvisoryservice.org.uk
Notes for Editors
1. The Pensions Advisory Service (TPAS) is an independent body
which exists to provide free information and guidance to the public
on pension matters generally.
2. TPAS provides a national pensions helpline 0845 601 2923
which is open 9.00 a.m. to 5.00 p.m. Monday to Friday.
3. TPAS acts as an impartial mediator in pension disputes
involving occupational, personal and stakeholder pensions. It has
no statutory powers and is not authorised to provide financial
(investment) advice.
4. TPAS provides a range of leaflets on different aspects of
pensions. Details can be found on its main website
www.pensionsadvisoryservice.org.uk
5. TPAS also has a website dedicated to stakeholder pensions at
www.stakeholderhelpline.org.uk
