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How to claim compensation for your mis-sold pension

How do I make a claim?

When the news first broke about the possibility that many second personal pensions may have been mis-sold, scores of people wrote to their pensions company to request a review to see firstly, if their pension was one of those that may have been mis-sold and secondly, to find out how much they may be entitled to claim back.

There was a deadline in the year 2000, however, it is not too late and you can still request from your pensions company a 'special pensions review procedure' to see if you may be entitled to compensation.

How do I know how much am I entitled to?

The review works by comparing what a person might have accrued in an occupational pension as compared to the personal pension they'd been advised to take out. If the former was higher, then the company that sold the pension has been required to make up the difference.

'Which?' said people who have been advised in the past to contract out should contact their pension provider and ask for a personalised statement to compare the projected income from their contracted-out personal pension with the amount they would have received from the State.

What if my firm or pension company is no longer in business?

If your pensions company is no longer trading as a business, you can apply to the Financial Services Authority (FSA) who have set up their own team to handle mis-sold pensions. You should contact the FSA Pensions Unit on  02... for advice on how to proceed. If a claim for financial loss has to be made, there is a body, the Financial Services Compensation Scheme (FSCS), which can make awards.

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