Phoenix Life failed to send annual pension statements to hundreds of former London Life customers following a “glitch” in its IT system.
The closed-book life insurer did not send annual statements to 308 savers for two years. Phoenix told its clients the failure to send updates was due to an error following an IT system upgrade.
Some customers who contacted Phoenix have been paid compensation for the inconvenience caused.
A Phoenix spokeswoman says: “308 London Life customers unfortunately missed annual statements and then received one or two error statements when we tried to correct the issue.
“It was spotted quickly and customers were sent the correct paperwork within four weeks. None of the affected customers suffered any financial detriment.
“This was caused by the upgrade to a more modern IT system which has been happening over the last couple of years and one we have made significant investment in.
“As with all system upgrades there will be occasional glitches.”
Richard Jacobs Pension and Trustee Services managing director Richard Jacobs says: “Big closed-book insurance companies do not care about customer service and it is an absolute disgrace.
“The consumer is the one who is being left behind here and the big risk is that people will transfer out and lose valuable benefits because they are sick of being treated so poorly.”