Good to know: You do not need to use a claims management company to make your complaint to your pension provider or intermediary. If your complaint is not successful you can refer it to the Financial Ombudsman Service or the Pension Ombudsman yourself for free if the firm is still trading. For eligible failed firms, you can refer a claim to the Financial Services Compensation Scheme for free.
If you worked for Marks & Spencer before 1st April 2002, you might have been awarded a final salary pension. Though final salary pensions are quite rare today, they are an extremely valuable and desirable option. Sadly, a number of former Marks & Spencer employees have been duped into missold DB transfer products. They were given negligent advice to swap their desirable defined benefit pension for a risky private scheme.
If you had a Marks & Spencer pension and were advised to switch, you may be the victim of a missold salary swap. If so, it’s time to make a final salary transfer claim.
The Financial Conduct Authority (FCA) warns all Marks & Spencer pension holders to be very careful when dealing with independent financial advisers. In many documented cases, these advisers provided negligent advice that did not consider their clients’ suitability for a pension transfer. In some cases, this is a matter of negligence. However, in some shocking cases, advisers purposely misled their clients so that they could earn a hefty commission.
If you or someone you love is the victim of a missold DB transfer, you could be entitled to defined pension compensation – read ahead.
Marks & Spencer rewarded their employees with a desirable pension package called a final salary pension. Final salary pensions (also known as defined benefit pensions) are often considered the gold standard. They pay a monthly amount for the rest of your life, keeping up with the rate of inflation. When the cost of living goes up so too does your monthly pension payment.
They are far superior to private pensions, which are tied to the market and draw from a limited pot. When the money is gone, the money is gone. Unlike a final salary pension that continues to pay until you die, private pensions can leave you broke in your retirement years.
In rare cases, such as terminal illness, it’s beneficial to trade in your final salary pension for a ‘Cash Equivalent Transfer Value’ (CETV), which is a lump sum. This is only advantageous in rare circumstances. However, some Independent Financial advisers realized they could make money with CETVs. They have misled people like you into a missold salary swap, advising them to take the CETV payment and investing it into a fixed pension.
Of course, they take a hefty commission from the CETV and leave you struggling in your golden years. A missold DB transfer can cost you as much as 50% of your pension income later in life!
If any of the above sounds familiar, you may be eligible to make a defined pension claim. If successful, you will be awarded defined pension compensation, allowing you to recoup some of what you lost.
As the victim of a missold salary swap, you now have legal recourse. The Allegiant team offers expert guidance on final salary transfer claims, and we have worked with other Marks & Spencer pension holders. To have your prospects assessed by our specialist team, simply fill in our online form.
Good to know: You do not need to use a claims management company to make your complaint to your pension provider or intermediary. If your complaint is not successful you can refer it to the Financial Ombudsman Service or the Pension Ombudsman yourself for free if the firm is still trading. For eligible failed firms, you can refer a claim to the Financial Services Compensation Scheme for free.
