with profits MVA pension scam ???

Question

I have a stakeholder pension with one of the leading companies. Part of it was in their WP fund. All their funds performances have (IMHO) been miserable. So I've decided to transfer out.

The transfer valuation is hitting me with an MVA ~3% (not a huge amount) on the WP fund. Nothing unusual so far, you might think, but read on.

My wife is in the SAME WP plan through her company. She has just received a document stating the MVA has been lifted on the WP plan. I called the pension company and raised cane, but they are neither relenting or repentant.

Seems unfair to me to be treating corporate plans different from personal on the same fund. Is this one for the Pensions Ombudsman (is there such a thing, if so a phone number, please) or Watchdog ?

Irked

sylvian stone · Accepted Answer

It is possible that if she is invested through a corporate plan, then she is invested in a different With-Profits fund than you are.

Generally, most insurance companies do not have one WP fund - they have a whole series of with-profits fund, relating to different time periods and contracts, each of which may have different bonus rates, guarantees, special conditions, etc.....

If this is the case, they are highly unlikely to lift the MVA, no matter how loud you shout.....

john boyle · Answer

In message , Irked writes

The level of MVA and whether it is levied or not is dependent on variables such as the length of time the funds have been invested, the length of time until the date it was due to mature, the amount of terminal bonus that may have accrued, the fund value etc., etc.,. Also you wife's plan may not be in exactly the same 'section' of the fund as you and hers might be a group or employer scheme that has different terms to your individual stakeholder plan. So it is unlikely to be a 'like for like' comparison.

Tim · Answer

"Irked" wrote Do you expect a car manufacturer to sell you a single car at the same price as a fleet manager pays (per car) for an entire fleet?

with profits MVA pension scam ???

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