Our government pensions are awarded to members of the British Armed Forces – Army, Navy or the Airforce.
The Ministry of Defence (MOD) awards these special types of pensions to their staff as an award for their dedication and sacrifices.
If you have worked for the military and have been advised to transfer your occupational pension out into any other pension such as a SIPP, SSAS, Personal Pension or a Qualified Registered Overseas Scheme (QROPS) you may be entitled to compensation.
Even if you thought you fully understood the implications of a transfer, for most, the right decision would be to leave their pension where it was.
You may have not been aware of the risks entailed in these types of pension transfers.
Private pensions are open to the market’s risks, the value of the pensions can go up and down easily. Once you retire and draw of your pension fund it can run out.
This makes Defined Benefit (DB) or Defined Contribution (DC) pensions, also called Final Salary Pensions, different. They continue to pay out until the death of the scheme member, no matter the age.
There are only very few circumstances where an Armed Forces pension transfer may be deemed suitable.
Reviewing the pension transfer process surrounding the British Steel pension scandal, the regulatory body has found many flaws and asked members to raise a complaint even if they are not aware of any issues and if their pension pot has grown!
So, this could apply to you even if:
- the firm told you they could not recommend the transfer, but still facilitate it!
- the firm explained that the transfer was suitable, if you wanted to release your tax-free cash lump sum to repay debt.
- the firm explained that your family members would benefit from the transfer, in case of your death.
- your new pension fund has increased and you can’t see a physical loss.
Hundreds of people have already complained about the advice they received from financial advisers.
Even if you’re happy with your decision to transfer, you should consider making a claim, as your case could be time barred at a later date.
If you don’t, you may end up with less money in retirement than you should have done.
Mr T has been a member of the Lloyds pension scheme and transferred approx. £70,000 away in 2009, the loss of his benefit was calculated to be £317,000 in 2019.
Mr M was a member of the Royal Mail pension scheme, he transferred £55,731 out in 2010. The loss of his benefits in December 2020 was calculated to be £271,537.
Ms G was a member of the NHS pension scheme and transferred £135,100 away in 2012. Her loss was calculated to be £310,000 in 2019.
Mr B was a member of the Saint Gobain Pension Scheme. He transferred £21,700 out in 2011, the loss was calculated to be £82,000 in 2017.
Mr H was a member of the Armed Forces Pension Scheme and transferred £43,000 away in 2011, his loss in 2020 was calculated to be £158,300.
So even if you have experienced growth on your current plan, you may still be entitled to money redress!
If the IFA firm should reject your case, in the first instance, the Financial Ombudsman could still award you up to £160,000 in compensation, if they agree that the firm has given unsuitable advice.
If the firm is no longer trading, the FSCS may be able to compensate you up to £85,000.
We understand that making a claim may seem like a worrying process.
Get claims advice now!
Why don’t you contact us for an informal chat to explore your options?
Our fees are reasonable in comparison to solicitors or other firms, as we don’t buy data from third parties and operate call centres.
Our initial pension claim consulting chat (or multiple if you should have further question) is free of charge and a pension claims expert will be happy to give you an idea as how to progress a complaint yourself or assist with the process.
And you’ll only ever pay on success – once you’ve received your money redress – and are satisfied with the service we have provided.