Pension Providers Are Delaying Freedoms Intentionally
We give the elderly our seats when they’re riding on the public bus because they’ve earned it. Years of hard work, raising their children, the elderly deserve better. However, some pension providers, even local government-run pensions, simply cannot understand that simple logic. These organisations deserve to be named and shamed.
Out of 13,000 pension requests filed after the implementation of new pension freedoms last April, the Civil Service, The Royal Mail and even Local Governments are delaying provision of basic information that would allow retirees to use their money.
Pension reviews are held back because the aforementioned companies make the retirees wait for 12 weeks.
Compared to the Clerical Medical and Railways Pension who could provide information in two weeks, the speed is utterly unfair.
Organisations, such as Make Pension Freedoms Work, said retirees are facing huge inconvenient barriers intentionally set-up to achieve something, probably to allow corporations to buy more time for themselves.
The slowest companies are those in the transport industry. The Fist UK Bus Pension Scheme and Civil Service Pension schemes have their elderly wait for 12 weeks!
The National Employment Savings Trust or Nest, a defined contribution pension scheme, only takes a few weeks to provide crucial information for any pension review.
According to Director of Service Management Nick Sex:
“Because Nest is a young scheme, we’ve had very few requests to transfer money out into other schemes for the purpose of consolidation. Where these occur we respond as quickly as we can, but this depends on the complexity of the case and the information provided to us by members. For transfer requests, we aim to reply in 10 days based on all of the information being provided to us.”
Meanwhile, Royal Mail’s spokesman talked about their lacklustre performance:
“We strongly dispute this claim. We already go a long way above and beyond what many other UK schemes do for members. We offer flexible retirement so that people can take benefits payable at 60 (from age 55) and continue to accrue benefits payable at 65 and still be covered for death in service, redundancy and ill health benefits if required. Members are also allowed to use their additional voluntary contributions to fund their tax free lump sum.”