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This publication’s Financial Investigator delves into reader concerns, exposing hidden truths and securing resolutions for those financially disadvantaged. Contact details are provided below.
Pension Payout Discrepancy: Reader Seeks Resolution with Willis Towers Watson (WTW)
A reader, identified as J.M., contacted this column following retirement and a final quotation from Willis Towers Watson (WTW) concerning a Rockwell Automation pension.
The initial estimate projected a lump sum of £146,000 and an annual pension of £22,198. However, the actual lump sum received was approximately £5,000 less, and the annual pension was reduced to £21,685.
WTW acknowledged the error and issued an apology, offering £500 as compensation.
Prior WTW Error and Pensioner Claim
This investigation follows a previous report in July concerning a similar mistake by Willis Towers Watson, a multinational corporation administering pension plans for numerous UK firms. In that instance, WTW erroneously informed a Lloyds Bank pensioner, retired for seven years, of overpayments in their lump sum and monthly pension, demanding £95,000 in repayment.
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Mistake: WTW’s stance was that they are only obligated to remit accurate amounts and not erroneous sums
WTW requested extensive financial details from the pensioner before considering compensation, even suggesting the sale of personal assets to cover the demanded amount.
This column questioned why WTW’s miscalculation, attributed to a large multinational company, should burden a pensioner. Ultimately, WTW retracted its claim entirely.
Repeated Errors in Pension Calculation
Despite this precedent, a comparable situation has emerged. In the current case, WTW repeatedly miscalculated pension figures.
Initially, WTW quoted a pension lump sum of £146,547, which was accepted, and retirement proceedings commenced.
Subsequently, WTW revised this figure downwards to £139,636. Following protests, WTW admitted to an error and proposed an increase of £1,016, only to acknowledge another mistake three days later, raising the top-up to £1,762. The final revised lump sum became £141,398.
Trustees’ Response and Further Action
WTW’s competence was challenged, and a formal appeal was lodged with the trustees of the Rockwell Automation pension scheme.
The trustees determined their obligation was limited to disbursing correct amounts, not mistaken figures. However, Brian Watson, trust chairman, indicated an increased compensation offer of £1,500.
Watson criticized WTW, stating: ‘Due to the errors encountered, the trustees are undertaking a review of WTW’s processes, and changes will be implemented to prevent similar errors in the future.’
It is hoped the £1,500 compensation will be sourced from WTW’s funds, not the pension fund itself.
The complainant is now escalating the matter to the Pensions Ombudsman, suggesting a resolution is unlikely for several months.
The scheme trustees conveyed their apology, stating: ‘The trustees are very sorry that the service received by the member fell below the expected standard normally provided by the scheme’s administrator.’
David Booth, Leeds-based secretary to the Rockwell pension trustees, and also a WTW employee, delivered this apology for service deficiencies by his own employer.
Concerns arise whether Rockwell should consider alternative administrators for their pension scheme.
WE’RE WATCHING YOU: Investment Firm Owner Faces FCA Charges
The Financial Conduct Authority (FCA) has charged the proprietor of a Nottinghamshire-based investment firm with operating without authorisation and dishonestly misleading investors.
John Burford, of Mansfield, is the owner and sole director of Financial Trading Strategies Limited, a company providing daily investment advice and managed funds.
Under Scrutiny: John Burford has been charged by the Financial Conduct Authority
The FCA alleges Burford recruited over 100 investors and purportedly generated more than £1 million. Regulators claim he misrepresented fund values and the extent of investors’ financial losses.
This column issued a warning regarding Burford in August, noting that despite the ongoing FCA investigation, his Tramline Traders website continued to solicit new subscribers for investment tips.
When questioned, Burford offered no information regarding the whereabouts of investors’ funds.
Burford, 85, holding a PhD in physics and formerly employed by NASA, is scheduled to appear in court in London on May 23.
If you believe you are a victim of financial misconduct, please contact the Financial Investigator at Financial Mail, 9 Derry Street, London W8 5HY or via email at [email protected]. Due to high enquiry volumes, individual responses are not possible. Please send copies of original documents only, as returns are not feasible.
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