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London Life transfer valuation £70k short

London Life has come under fire after underestimating the transfer value on a client’s pension fund by £70,000.

Intelligent Pensions tech-nical director David Trenner received the first transfer value of £126,544.37 on January 14. Trenner queried the figure and got a letter on June 12 restating the figure at £195,049.56 – a 36 per cent increase. After he challenged the figure again, London Life, part of the Pearl Group, told him on July 4 that the fund was worth £128,228.66.

Trenner complained in August and got a letter on September 13 confirming the TV as £196,759.45 and apologising for the mistake.

The letter explained some of the previous values were calculated assuming the client’s scheme was still live, resulting in penalties applied in error.

A London Life spokeswoman said: “Once the error was brought to our attention, London Life gave Trenner the correct values. Pearl Group, which owns London Life, has over four million policies. It is regrettable but human error does occur.”

Trenner says: “It is frightening. How many times has it got the transfer value wrong when it has not been queried? The firm has apologised but given me no assurance that the same thing will not happen again.”

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