You are here: Home - Retirement - Retirement planning - News -

A million NOW: Pensions members due compensation

0
Written by: Paloma Kubiak
06/02/2018
NOW: Pensions Limited has been fined by the regulator for ‘persistent administrative failings’ which include members’ savings not being invested. As a result, a million members are due an adjustment.

The Pensions Regulator (TPR) has fined NOW: Pensions a total of £70,000, made up of a £50,000 fine for failing to process core financial transactions accurately and promptly, and £20,000 for failing to report late or missing contributions to some members.

The regulator has also set NOW: Pensions – one of the largest auto-enrolment providers ­– an April deadline to fix the long-running issues with the pension scheme and tasked it to set up a compensation scheme for those impacted as a result of the “persistent administrative failings”.

NOW: Pensions has 1.5 million members and it confirms two-thirds (one million members) have experienced some delay in their savings being collected from employers and therefore not invested.

Given its average pot size is £385, NOW: Pensions said the typical adjustment, or compensation, will be £2, thought it could be larger or smaller depending on the amounts and delay experienced by members.

It confirms scheme members don’t need to take any action as they will be put back into the same position as they were previously.

The c. £2m compensation will be paid by NOW: Pensions and won’t come out of members’ funds.

Nicola Parish, TPR’s executive director of frontline regulation, said: “This package of measures, together with those voluntarily taken by the trustee, should ensure that the issues with NOW: Pensions which have persisted for so long are finally resolved.

“We will continue to monitor progress and will issue further fines if necessary to ensure that the trustee and NPL focus on resolving the issues as swiftly as possible.

“Trustees, sponsors and administrators should be in no doubt that we will act if we are concerned about the way schemes are being run.”

NOW: Pensions said the delays arose when it received inaccurate, incomplete or missing payroll data from employers, such as missing date of birth, National Insurance number of information relating to the wrong period. This meant the data was held in its system so it couldn’t be verified and invested.

Troy Clutterbuck, Interim CEO, NOW: Pensions Limited said: “I am truly sorry for the delays that some clients have experienced processing pension contributions. We’ve been working closely with The Pensions Regulator on the steps detailed in the Improvement Notice and Third Party notice and have made significant progress. I’m pleased to say that the vast majority of schemes are now up to date. Work continues on a small percentage of larger and more complex schemes and these will be updated by April – the deadline set by the Regulator.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Insurance Experts: Are you fully insured? Click here to get a quote.

For a free quote or to speak with an insurance expert call 0800 1218744

Why you shouldn’t buy travel currency in the UK with your credit card

If you’re heading abroad this summer, exchanging money in the UK ahead of your travels is a sensible idea. But...

Bank of England: base rate could stay under 2% for 30 years

The Bank of England (BoE) has admitted that current forecasts show its base rate could remain under 2% for the...

Taking tax-free cash from a pension: what you need to know

The pension reforms of 2015 allowed those approaching retirement to access any amount of money from their pots...

Ryanair jetting towards US flights for £10

Ryanair is on course to achieve its long-held ambition of offering transatlantic flights to the US – and the...

Investing in car parks: a good vehicle for income seekers?

As the search for income continues, many investors are turning to alternatives, with car parks becoming increa...

A quick guide to guarantor loans – in association with Guarantor Loan Comparison

Considering a guarantor loan or becoming a guarantor yourself? Read our essential guide...

Results round-up: Companies to watch this week

Mulberry and more will face the music this week.

Product launches of the week

Select Property Group, Schroders, Leeds Building Society and more have exciting news this week.

YourMoney.com Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
Bitcoin
Lloyds and Virgin Money ban credit card users from buying Bitcoin

Lloyds Banking Group and Virgin Money have confirmed they will no longer allow customers to buy cryptocurrencies such as Bitcoin...

Close