Legal & General has admitted mistakenly sending letters to customers warning of year-long delays in calculating tax-free cash on EPPs.It says the maximum processing time is actually 12 weeks, not 12 months, as the letter states. L&G says it is struggling to perform the calculations as quickly as usual because of a significant increase in requests since A-Day. The statement follows a complaint from Amersham Financial Planners IFA Ian Smith who received the letter after submitting an urgent request to L&G to calculate tax-free cash for one of his clients about to reach retirement. He says he sent completed questionnaire forms on June 5 to enable L&G to perform the calculations but the forms were rejected because they were the pre-A-Day versions. He sent another letter containing the updated forms on August 15, which L&G says it did not receive. The same letter was resent in September. L&G says it expects to process Smith’s request by September 29 and “normal service levels” should resume by the end of October. A spokesman says: “It appears the letter went out in error to a small number of customers. We are writing to these customers to explain the error.” But Smith says: “This is ludicrous. My client has already passed his retirement date and has been left in limbo.”
Employers need to pay between 9 and 10 per cent into pensions schemes on top of employee contributions to close Britain’s £27 billion savings gap, says financial services consultant Mercer Oliver Wyman.
PruHealth is warning that private medical insurance premiums will increase sharply over the next five years as the NHS increasingly farms out procedures to private hospitals. Sales director Dave Priestley says 15 per cent of the NHS’s procedures will be carried out in the private sector by 2010, making it the biggest spender on private […]
F&C Asset Management is confident that its multi-manager distribution fund has a competitive advantage over other companies which are entering this market as an alternative to with-profits. The distribution fund recently hit the £250m mark at around the same time as Fidelity set up its multi-manager distribution fund. F&C concedes that the market is competitive […]
‘Cosy working party chats just delays decisions on taking care planning action’
Matt Shafer, Head of International Distribution, discusses the firm’s philosophy around Durable Portfolio Construction, particularly the importance of putting risk first, thinking about better ways to use traditional asset classes and how to position alternatives in portfolios.
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