PAS chief executive Malcolm McLean says some teachers were missold AVCs by the Pru when they would have been better off buying added years in the teachers’ final-salary scheme. He says: “It is misselling because it is clear that a number of teachers were not made aware of the added years’ option.”
But Pru says there is no evidence of misselling and all brochures sent to teachers have been vetted by the Department for Education and Skills. It says a review would be heavy-handed as it believes the vast majority of cases would fail to show misselling.
Pru spokesman Paul Keeble says the firm received 1,005 complaints from teachers in 2004 and it turned down 98 per cent. Of the 190 referred to the Pensions Ombudsman, 93 have received a ruling, with 85 in Pru’s favour. Pru has sold 160,000 AVCs to teachers. Keeble says: “There is no evidence of misselling.”