If you had a British Telecom pension and a financial adviser recommended that you switch pension schemes to a private pension, you may be the victim of a missold salary swap. If so, you could be eligible to make a final salary transfer claim. The team at Allegiant can help you get the salary swab compensation you deserve
Did you know that the Financial Conduct Authority (FCA) recently expressed their concern over financial advisers’ erroneous advice to swap defined benefit pensions to private schemes? It is very rare for a final salary pension swap to benefit you. If your financial adviser made this recommendation, they likely gave you negligent advice and missold DB transfer products.
In some cases, your adviser did not consider your suitability, resulting in flawed advice to transfer to a risky and unsuitable scheme. However, in many cases, an independent financial adviser is only paid on a “contingent fee” basis and only benefited if they switched you to an inferior pension product. Sadly, they put their own financial interests above their clients’ interests. Does this sound familiar?
If you were the victim of a missold DB transfer, you could be eligible for defined pension compensation – keep reading.
In the past, British Telecom employees were often offered a valuable pension option that is rarely offered today – a final salary pension.
Final salary pensions are also known as defined-benefit pensions. They are considered extremely desirable because they continue to pay out for the rest of your life, as long as you live. They also keep up with the rate of inflation, so that you can continue to live to the standard to which you are accustomed, and they don’t come with high fees or other associated costs.
All of these benefits make final salary pensions very attractive to unscrupulous independent financial advisers. They will encourage you to trade in your defined benefit pension for a ‘Cash Equivalent Transfer Value’ (CETV), from which your adviser will take a hefty commission.
You can then use this cash payout to invest in a private pension scheme, which is fixed and subject to market rates. Once this money is gone, it’s gone – plenty of pensioners have seen their hard-earned money disappear with one wrong turn of the market.
These kinds of pension swaps are rarely beneficial to the holder – instead, they are extremely risky. You’ll soon find out that you are a missold salary swap victim, and you’ve been sold a lemon.
If you were convinced into transferring your BT pension to a risky private scheme, you might be eligible to make a salary swap claim. If successful, you could recoup some of your financial losses with salary swap compensation.
We can help – with a successful defined benefit transfer claim, we can help reverse the damage and get you the defined benefit compensation that 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.
Our small, dedicated pensions team provide a personal touch
We’ll treat your claim as strictly confidential. Your personal information is safe with us.
We’ve serviced over 100,000 clients across all service lines since our inception in 2010.
We could still help if you don’t have all your paperwork or details. Our team are experienced in helping locate paperwork where possible.
Our online application system and claim audit surveys enable us to offer an efficient and convenient claims journey.