Poor Administration Dogs Pension Providers

by Gill Montia

Story link: Poor Administration Dogs Pension Providers

The Pensions Advisory Service (TPAS) has published its 2006/07 annual report in which it highlights a substantial increase in the number of complaints received.

The service is an independent non-profit making organisation that provides information, advice and guidance across the whole spectrum of pensions. In all 6,821 complaints were made during the year, a 15% increase on 2005/06.

Poor administration was the greatest source of dissatisfaction and accounted for 31% of complaints.

However, in the case of personal pensions the number of complaints increased 43% and TPAS has accused some pension firms of a lack of concern for customer service.

Some of the worst offenders were amongst pension providers that are closed to new business, that is to say the pension fund continues to invest but does not accept new members.

It seems that these funds often have under-resourced administration units and little or no customer service ethic.

TPAS chief executive, Malcolm McLean, has suggested that in some cases the services is so poor that the Financial Services Authority should take action.

On a brighter note, complaints about workplace pension schemes fell 12% during the year and the number of visitors to the TPAS website increased 53%, to 404,010.