If you worked for British Steel, you earned a good salary and a reliable pension. Over the years, you contributed to a final salary pension that would support you in your retirement years. However, many retired British Steel employees have been tricked into missold salary swaps. Did this happen to you?
The Financial Conduct Authority (FCA) has raised the alarm bell about missold DB transfer products. Independent financial advisers, some of them working for the most trusted names in the country, gave negligent advice. They convinced pension holders to swap their sought-after final salary scheme to inferior private schemes, all so they could take commissions from the cash pay-outs.
Some advisers did this unwittingly – they provided poor advice because they did not understand the products. However, in many cases, independent financial advisers did this on purpose to earn commissions. They were only paid on a “contingent fee” basis, so they only earned money if they switched their pension, causing them to put their income ahead of your best interests.
Were you the victim of a missold salary swap? Find out if you are entitled to defined pension compensation – read ahead.
British Steel employees received enviable pensions. These were often final salary pensions, which keep pace with inflation. When the cost of living increases, your monthly income increases as well, and they don’t have fees or extra costs. Best of all, a final salary pension (also known as a defined benefit pension) lasts as long as you live.
As you can imagine, these pensions are extremely valuable. This high value has led greedy financial advisers to pressure pension holders into missold salary swap agreements in favor of fixed pensions. Fixed pensions are an inferior product. They include high fees, and they don’t keep up with inflation. They draw from a limited pot – when the money is gone, it’s gone. You could be left destitute in your golden years.
So, how did financial advisers benefit from missold salary swaps? When you trade in a final salary pension, you get a ‘Cash Equivalent Transfer Value’ (CETV). You use this cash payout to invest into a fixed pension you can draw from when you turn 55. Dishonest financial advisers take a significant cut off this CETV and then walk away. They don’t warn clients like you about the risks of pension transfers, and you end up paying the price.
It is very rare for a final salary transfer to benefit you. A reputable financial adviser is unlikely ever to recommend this option. Thankfully, you might be entitled to make a final salary transfer claim. If successful, this final salary compensation can help you recoup some of the money you were swindled out of by your missold salary swap.
Allegiant can help reverse some of this damage and help you get the defined pension compensation you deserve.
To have your prospects assessed by our specialist team, simply fill in our online form.Apply Now
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Pre complaint investigation and analysis. No paperwork? Don't Worry! We could still help.
Once we've assessed claim prospects, we make a pension complaint to the Ombudsman or FSCS, where appropriate
Pension complaint response received. We'll carefully analyse the response and advise you on how to proceed.
If appropriate resolution cannot be reached with a live firm, and we disagree with their stance, we will refer the claim to Ombudsman on your instruction.
As of the 1st March 2022 we have implemented a new fee structure which we have explained below. If you signed your contract with us prior to the 1st March 2022, please refer to your signed claims pack for our previous fee terms.
Our fees are owed upon a successful claim and will depend on the Gross Compensation you receive. “Gross Compensation” means the amount awarded to you whether this is paid directly to you or paid into an investment or pension, and prior to any deduction of any income tax due to HMRC on your award. Please refer to the definition of “Gross Compensation” and Section 5 of our Terms of Engagement for further information including a table showing how our fees work in different scenarios.
If successful, your fee will be calculated based on which band your redress falls into and will be charged by whichever is the lowest of:
The below table outlines the redress bands, the maximum percentage rate of charge and the maximum total charge is for each band.
|Band||Redress||% Charge (with VAT)||Maximum charge (with VAT) (£)||Maximum charge (without VAT) |(£)|
|1||1 – 1499||36%||504||420|
|2||1,500 – 9,999||33.6%||3000||2500|
|3||10,000 – 24,999||30%||6000||5000|
|4||25,000 – 49,999||24%||9000||7500|
Examples of how this would work in practice:
|Band||Lower example||Higher example|
|1||You receive £100 in redress; our fee would be £36.||You receive £1499 in redress; our fee would be £504.|
|2||You receive £1,600 in redress; our fee would be £537.60.||You receive £9,999 in redress; our fee would be £3,000.|
|3||You receive £12,000 in redress; our fee would be £3,600.||You receive £24,999 in redress; our fee would be £6,000.|
|4||You receive £30,350 in redress; our fee would be £7,284.||You receive £49,999 in redress; our fee would be £9,000.|
|5||You receive £55,000 in redress; our fee would be £9,900.||You receive £100,000 in redress; our fee would be £12,000.|
Please note, the above fee examples are for illustration purposes only. They are not an estimate of the likely outcome or fee you will need to pay. Each claim depends on its own merits.
It is possible that our fee may become payable before you have access to your pension or investment which may result in you having to pay our fee from your own funds
You can cancel for free at any time within 14-days without giving any reason and without incurring any liability. You can communicate your cancellation by telephone, post, email or online.
You can cancel this agreement at any time after the 14-day cancellation period. However, if a complaint submitted by us is successful, the Success Fee will apply in the usual way.
You can cancel by post: Allegiant Finance Services Limited, Freepost RTYU–XUTZ–YKJC, 400 Chadwick House, Warrington Road, Birchwood Park, Warrington, WA3 6AE; (b) by email: [email protected]; (c) by telephone: 0345 544 1563; or (d) online at https://allegiant.co.uk/compliance/cancellation.
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We’ve serviced over 100,000 clients across all service lines since our inception in 2010.
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