Question 13
My pension provider quoted the level of benefits I would receive but now they are saying that they made a mistake, and I am only entitled to a lower level of benefits when my pension begins. Do they have to stand by the original higher quotation?
Your pension provider can only pay you the benefits that you are entitled to under the rules of the pension scheme. Giving you an incorrect quote does not change your entitlement.
If you relied on the figures given to you in the higher estimate and spent monies or made financial decisions you would not have done otherwise, there can be grounds to argue that your provider should put you in the position you would have been in if they had not given you the incorrect information in the first place.
However, it must be the case that the error was not one you could have spotted yourself. For example, if the original figure seemed very high in the context of your pension contributions or length of service, or if something else does not look right, you should query it straightaway. Once you are aware of the provider’s mistake, you would be expected to change any decisions you made based on the higher estimate to stop your financial loss getting bigger.
If you think you have relied on incorrect information you should first give details to your pension provider. If you are dissatisfied with their response, please complete our application and send us all relevant paperwork.
Related questions
We cannot decide on your eligibility for an ill health pension, but we can look at how a decision about an ill health pension was made and if it was made by the right decision maker.
We would look at whether the right decision-maker has:
- Followed the scheme’s rules correctly;
- Asked the right questions; and
- Only taken into account relevant evidence and ignored irrelevant evidence.
If we decide that the decision-maker has not reached its decision properly, we can direct them to revisit their decision and make it again. However, we cannot prevent them from reaching the same decision as long as it is made properly.
Contributions deducted from your pay must be paid to the scheme by the 22nd of the following month (if paid electronically) or by the 19th of the following month in any other case.
If this has not happened, you should first raise this with your employer and give them the chance to put things right. To find out more, please see our ‘Complaining to the party/parties at fault’ factsheet.
If you are unhappy with their response or remain dissatisfied please submit a completed application to us along with relevant paperwork and supporting documents.
More information can be found in our ‘Workplace pensions – unpaid pension contributions’ factsheet.