Residual annuities after a death

[Bouleversee]

Is this the right board to post re the above? I couldn't spot an annuities board, a dying species I suppose, but some people still have them.

[Alaric]

Is this the right board to post re the above?

Payment of Pension Income and the rules governing it, would seem a legitimate Pensions practical problem.

[Bouleversee]

Thanks, Alaric. Here goes, then:

After the Equitable Life debacle, my husband transferred his EL drawdown (which was his main pension after his firm had terminated their final salary scheme and put the staff into Personal Pensions) into a fixed rate annuity with Phoenix Life (they may have been called something else then but that's who provides the annuity now). He also had a couple of small annuities with Just Retirement and Canada Life. A few days after my husband's death on Nov. 22, I contacted all three companies to notify them, in the hope of preventing his Dec. 1 payments . The latter two responded quickly and efficiently and I quickly started receiving my two-thirds annuity. Phoenix, however, have been awful When I phoned them, they said they would write to me within l5 days and when I complained that that was too long and said that the others were going to write to me the next day, they said they would look into it and ring me back the next working day, but they didn't. They paid my husband's Dec. 1 payment into his acct, and then wrote and asked for it back and although I sent them a cheque, I have still not received any payment myself. Today I received a letter dated Jan. 11 saying a payment would be made into my account within 3-4 working days. It's not there yet.

Fortunately, I am not by any means on the breadline but they don't know my circumstances and what if I had been a mother with young children and Christmas and presents to pay for and mortgage payments to meet; or what if I had been in a nursing home with huge fees to pay? What gets me is that it is not that something has gone wrong in my particular case; complaining gets you nowhere because they say this is their normal procedure and there is absolutely no sensitivity or caring in their attitude and absolutely no apology or desire to improve their unacceptable procedure.

I am writing this to alert anyone who is on the point of taking out an annuity. You may wish to avoid this company like the plague, unless you think it is reasonable to keep your dependents waiting for such a long time for the first 2 monthly payments which amounted to a substantial sum. I am amazed that they are allowed to do this. It's bad enough when you have lost your spouse without this additional aggravation.

[Alaric]

fixed rate annuity with Phoenix Life (they may have been called something else then but that's who provides the annuity now).

Phoenix Life are consolidators. They don't actually sell very much directly to the public, rather they take on the liabilities of financial groups who want to leave the sector. You can thus find yourself with them against your will. Despite now being of considerable size they may have little incentive to ensure efficient and effective customer service.

I agree with you, being able to process the necessary changes after being notified of a death should be one of the basics. As you say, that gives decent marks to Just Retirement and Canada Life for being able to handle this.

[Bouleversee]

fixed rate annuity with Phoenix Life (they may have been called something else then but that's who provides the annuity now).

Phoenix Life are consolidators. They don't actually sell very much directly to the public, rather they take on the liabilities of financial groups who want to leave the sector. You can thus find yourself with them against your will. Despite now being of considerable size they may have little incentive to ensure efficient and effective customer service.

I agree with you, being able to process the necessary changes after being notified of a death should be one of the basics. As you say, that gives decent marks to Just Retirement and Canada Life for being able to handle this.

Ah, I see. As I said, I don't think the annuity was with them originally and I thought they had taken over the original provider. However, I didn't realise they didn't sell any annuities directly. I was going to write to the boss when I have time but sounds as though that would be a waste of time. Any point in complaining to the Ombudsman? They really shouldn't be allowed to get away with such appalling service.

[Dod1010]

Actually Phoenix Life make a good investment for shareholders but if the truth be known, they took over quite a lot of fairly second rate companies which were giving up for that very reason and are now 'running off', in insurance jargon, these liabilities. They really have little incentive to sharpen up their practices (although that is not a very good reason for them not to do so) In fact that is or should be their fundamental business so as to keep their expenses down and the release of reserves for shareholders up.

Unlike their stablemate, Chesnara, they do not as far as I know have a 'live' operation.

Dod

[Bouleversee]

When I pay my bills, the payments go by faster payments and are received immediately. Why should Phoenix be allowed to use BACS which takes several working days. This morning the Dec. 1 and Jan. 1 payments were received in my account, having been initiated supposedly on Jan. 11. I can see why they are a good investment for shareholders as sitting on people's money for such a long time must enhance profits considerably but that's not a way I would want to make my money.