Payout expected for bad pensions advice
The individual sums of compensation range from Pounds 2,350 to Pounds 29,976. The first case last December resulted in Abbey Life reimbursing Jennifer Brown, of Dudley, West Midlands, Pounds 20,933 and led to her reinstatement to the TSS. In another case ATL member Sarah Hawkins recouped Pounds 13,200 and had her pension readjusted after bad advice by Teachers' Assurance.
Four out of five of the 140 cases concern women who were persuaded that they had a pension shortfall because of time spent raising a family. The union wrote to the Securities and Investment Board demanding tough action against companies who had given erroneous pensions advice. This week the SIB issued a damning report into the widespread mis-selling of personal pensions since the Government made their promotion possible in 1988. The board has ordered the companies concerned to examine the files of at least 360,000 people.