Misled over a pension

"reven" wrote

Where's the suggestion that something the OP signed stated they were being contracted-out of S2P? In fact, the letter mentioned from the FA stated that they were *not* being contracted-out!

Thanks for your support Tim. Unfortunately Usenet attracts these idiots who like to try and boost their own self importance by trying to make other people look foolish, when it is they who end up with egg on their face.

can't contract out without a signature, so having got yourself into this mess, be careful what you say about others. As honest advice, I suggest that a) you always read what you sign and b) ask for a copy of the application form to see if you did sign, then c) go back to your adviser and ask for an explanation. if you are contracted out then you are a numpty, if it is a mistake, well done for spotting it.

"reven" wrote

Oh no? Have you never heard of the saga of the "missing APP1's" ?!

Back in the late eighties / early nineties, there were many thousands of forms APP1 (the form used to contract out) which went missing - it was such a problem that the DSS agreed a solution with life offices to sort these out. Needless to say, the lack of the **entire form** (let alone just the

*signature*) did not stop the process of contracting-out, and many people still had rebates re-directed to the life office.

I'm always careful what I say about others. I don't recall signing anything about opting out and I'm meticulous in keeping records. I'll post back after doing further digging.

This is easier said than done. I now consider myself knowing more about pensions and investments than 99% of the public (and I still know relatively b***er all) but I still got conned.

Years ago, I was in a business where one of the directors ran an insurance/pensions selling business. Years later, when I left there, I discovered that he had set up about half a dozen personal pension plans. Some of these were invested in the same funds, and an IFA looking at it said that the only possible motive was getting multiple startup commissions. I also contracted out of serps.

I also had a potentially vastly overfunded EPP which took a huge amount of hassle to move to a PP, GN11 and all...

Of course I must have signed some forms at some stage. But I knew nothing about it at the time. You consult and "expert" and you trust him. It's completely natural and takes years to un-learn.

Better than that... a lot of life offices failed to meet some sort of opting out deadline. They then had to appoint an actuary to estimate the loss to the individual, and mail out compensation cheques.

I got a nice cheque for about £2500, c. 1991. It was meant to be invested in the PP but I just cashed it :)

nowadays you probably can "trust" an expert, in that past probably not. A signature though is a powerful tool, use it wisely, and only when you 100% understand what it means. Patronising I know, but how many times do people sign without reading nor understanding.