LV= says it is the only provider to pay compensation to consumers who do not receive their tax-free cash within seven working days on its income drawdown plans.
The mutual is guaranteeing that pension lump sums will be paid within seven working days or £1,000 compensation will be paid to pensioners.
This is a fourfold increase on the compensation offered by the Tomorrow business that LV= acquired and relaunched under its own brand in January.
This commitment has been extended to include the LV= discretionary management option and fund supermarket Sipp.
Life and pensions managing director Rodney Cook says: “We understand that service standards count to financial advisers and their clients. When all formal documentation has been received by us, there is no reason why clients cannot have their tax-free cash paid within seven working days. We believe so strongly in service excellence and our administration capabilities that we want to makea statement about that.”