Occupational Pension Transfer Claims — Private Sector DB Mis-Selling
Nadeem Pervazis a solicitor at Edward & Amaury Solicitors, a law firm authorised and regulated by the Solicitors Regulation Authority. Content is reviewed for legal accuracy and compliance with FCA guidance and SRA conduct standards.
TL;DR — Quick Summary
- ▸Advice to transfer out of a private sector defined benefit occupational scheme is subject to the same FCA suitability rules as any other DB transfer.
- ▸Final salary and career-average occupational schemes provide guaranteed income — transferring out is almost always unsuitable.
- ▸Claims can be brought against the adviser and/or through FOS/FSCS regardless of whether the employer or scheme still exists.
- ▸If the scheme entered the PPF, loss is calculated against what the PPF would have paid — not the full scheme benefits.
- ▸Time limits apply — seek advice promptly.
Millions of UK workers built up defined benefit pension rights with private sector employers. Many were advised to transfer those rights into SIPPs or personal pensions. For the vast majority, that advice was unsuitable — and the losses have been substantial. If you were advised to transfer out of an occupational DB scheme, you may have a significant claim.
Quick Answer
Advice to transfer out of a private sector occupational DB pension is subject to the same FCA rules as any DB transfer. If the advice was unsuitable, you may have a significant claim — regardless of whether the employer or scheme still exists. Contact us for a free review.
What DB Occupational Schemes Provide
Guaranteed income for life
Based on salary and years of service — not dependent on investment performance.
Index-linking
Annual increases — either in line with RPI/CPI or at a fixed rate — protect the real value of your pension.
Spouse's/partner's pension
A continuing pension for your surviving spouse or partner.
Lump sum on retirement
Many schemes provide a tax-free lump sum at retirement in addition to the pension income.
No investment risk
Your income is guaranteed — you do not bear any of the investment risk.
The Pension Protection Fund (PPF)
Where you were advised to transfer out of a scheme that subsequently entered the PPF, the compensation calculation must compare what you would have received from the PPF — not the full scheme benefits. The PPF pays 90% of benefits for deferred members, subject to an annual compensation cap. If the PPF payout would have exceeded the value of the fund you transferred into, there is still a measurable loss — and potentially a claim.