Did Angus Council Employees Fall Victim to Pension Mis-Advice?
Were you advised to move your pension from the Tayside Pension Fund? If you were, you may have been mis-advised and suffered substantial “hidden losses” running into tens or even hundreds of thousands of pounds.
It wasn’t fully explained to victims the huge benefits and guarantees they were giving up by moving. Instead, they were hooked by the promise of a big tax-free cash payment and a pension pot to call their own. Neither was it explained that Local Government Schemes, of which there are 11 in Scotland, offer very low transfer values.
High inflation over the last few years and heavily fluctuating stock markets have seen the true value of pensions that were transferred elsewhere often sink in value. Meanwhile, fund and advisor fees, often running into thousands of pounds each year, continually take huge chunks out of these transferred pensions. To be clear, staying within the Tayside Pension Fund would have meant no fees ever, no risk, and having a substantially inflation-proofed pension for life.
To illustrate the severe impact of the inappropriate pension transfer advice given to Tayside Pension Fund members, we present three real cases of mis-advice, all right here on our doorstep. These cases highlight the financial losses and the deceptive practices employed by certain financial advisers. Each case underscores the critical importance of regulatory compliance and the devastating consequences when it is not adhered to.
Amount won: £85,000
Our client, a 63-year-old former council employee, was advised by Mike Connelly to transfer her Tayside Pension Fund pension into a personal pension with Royal London. She was misled into believing this would allow her more financial flexibility, but instead, she suffered significant financial losses. The FSCS calculated her losses at £116,656.26 but capped the compensation at £85,000.
Amount won: £85,000
In 2011, another client transferred his Tayside Pension Fund pension and two personal pensions into a Standard Life pension plan following advice from Mike Connelly. This move, which was supposed to consolidate and improve his pension performance, led to significant losses. The FSCS calculated his losses at £165,471.49 but capped the compensation at £85,000.
Amount won: £22,562.81
A 65-year-old client, still working for the local council, was advised to transfer her Tayside Pension Fund pension into a personal pension with Royal London. Misled by Mike Connelly, she faced substantial losses. Initially rejected, her claim was later upheld by the FSCS, which calculated her losses at £22,562.81.
Even if you insisted you wanted to move your pension or were happy with the advice that you received at the time, it doesn’t mean that you cannot still have a substantial claim for mis-advice. Pension Transfer Specialists have a huge responsibility to ensure the advice they give is not only suitable but also that the risks in moving away from a Final Salary pension are very clearly explained.
Have you or someone you know worked for Angus Council and transferred their final salary pension?
So even if you think you were given sound advice to transfer your workplace pension, how do you know? That’s why we make it simple. Call our team on 01382 200474 or complete our online enquiry form and we’ll be in touch as soon as possible. AND remember, that between Beat the Banks and our trusted partners, we do all the hard work on your behalf, PLUS claiming has absolutely no effect on your current pension arrangements.
