01 July 2009
In the year ending March 2009, The Pensions Advisory Service
(TPAS) dealt with a total of 7,746 complaints compared to 7,026 in
the previous 12 months - an increase of 10%.
Full details with case examples are given in TPAS's Annual
Review "Advising on Pensions: A Review of Activities
08/09" published today (1 July 2009).
The biggest single cause of the rise in complaints was poor
administration with increases in both delays and mistakes
contributing heavily to the figures. Most of the complaints
concerned individual pension plans, whilst complaints against
occupational schemes actually fell by 2% compared to the previous
year.
TPAS Chief Executive, Malcolm McLean, acknowledges that the
tough economic conditions in the second half of the year may well
have exacerbated the problem. "There was undoubtedly a
'double-whammy' effect", he says, "Many savers had experienced
significant reductions in the value of their pension savings from
continuing stock market falls and delays in obtaining an annuity
quote or award often meant a further reduction in the pension
eventually secured."
A significant proportion of the complaints about delay reflected
administrative malfunctions following insurance company mergers and
take-overs. Problems in integrating systems after a take-over
frequently caused delays in the payment of pension benefits and in
responding to requests from policy holders. Individuals also
advised TPAS of long delays in simply trying to get a response to
their complaint.
Similarly, errors and mistakes were a source of discontent for
many individuals. They resulted, not only in some instances
in a loss of expectation, but actual financial loss when
expenditure or commitments had been entered into in the belief that
a pension award or lump sum was correct when, as it later
transpired, it was not. In these instances, it was sometimes
possible with TPAS's help to obtain compensation and/or a write-off
of an overpayment where it could be shown that the individual had
relied or acted on the incorrect information to their financial
detriment.
The Annual Review details more of TPAS's activities in the year
2008/09. The number of general enquiries it received from the
public continued to rise - 75,000 calls were dealt with on the
helpline on top of the 12,500 written enquiries received by email
or post. .
Visitors to the TPAS website seeking information and guidance
about pension issues across the board were also substantially
increased. A new web tool Annuity Planner was
introduced. In total, including the website visits, nearly
three quarters of a million people used the TPAS service during the
year.
A particular feature of the year was the increasing number of
questions about the security of pension schemes and pension
providers. There was also a rise in enquiries from people
with money worries who were seeking information on whether they
could access their pension funds to improve their financial
situation.
Due to popular demand, the dedicated helpline for women's
pensions continued throughout the year. Changes to state
pension ages and qualifying rules from 2010 were also increasingly
the subject of enquiries from both men and women. At the year
end there was considerable interest in the changes to voluntary
national insurance contribution rates and the extended right to pay
these from April 2009.
The TPAS 'talks in the workplace' service continued to
flourish. During the year 80 presentations were made to over
2,500 people.
Note for Editors
- A copy of the report is attached.
- TPAS is an independent body supported by the Government which
provides free information and guidance to the public on pension
matters generally.
- TPAS provides a national pensions helpline 0845 601 2923 which
is open from 9.00am to 5.00pm Monday to Friday. There is also a
dedicated pensions helpline for women contactable on 0845 600
0806.
- TPAS acts as an impartial mediator in pension disputes
involving occupational, personal and stakeholder pensions. It has
no statutory powers and does not provide investment advice.
- TPAS provides a range of leaflets on different aspects of
pensions. Click here to be redirected.
