Response to letter dated 22 October

As you will see, the response has come from The trustee Corporation, not L&G (to whom it was addressed). Please note the part where Mr Sutton states that L&G are not really in a position to answer the question re financial loss - something to be wary of (they're the people managing our finances!!) 

There is mention of a response from Toyoda (Japan), this is yet to be received.

Email received Weds, 07 December 2011

Dear Mr Nichols

I apologise for the delay with this email. I can confirm that I did receive your email, despite the technical issues you suffered. Unfortunately, I have been out of the office regularly recently, following family bereavements.

First of all, can I apologise for the error which occured with your address. I imagine that the inclusion of a different address in an email from you from the one held on L&G's system would have (I think understandably) have caused confusion at L&G. They should have checked this with us, or with you directly but obviously did not. Suffice it to say, they are now completely clear as to your correspondence address going forward.

I note that you say Xxxxxxxx Xxxxxxxxxx, Xxxxxxxx Xxxxxxxxxx and possibly Xxxxxxx Xxxxxxxxx have not yet received the October 2011 announcement. I have therefore asked Stephanie to send them copies directly unless she is aware that these have already been sent and received.

I note the various comments you have made to Jonathan Asher about L&G's handling of the data. This has, as you know, been a concern to us throughout and was the key reason why the recent annuity recosting slot with Aegon was missed. Given that we now have until Q2/2012 for the next recosting slot, we are using the time to undertake further data checking exercises. The first is the second round of data verification directly with members. As I mentioned in my recent email, this is underway internally (Steph having spot checked some 15% of the forms) and a number of questions have been raised with L&G. I am also discussing a further approach to data verification with L&G but am unclear as yet if this will be achievable. The aim is to move closer (as close as possible) to 100% confidence in the data set underlying the buy-out with Aegon.

You have also asked L&G if they can guarantee that members will suffer no financial loss. L&G are not really in a position to answer this. They are aware of the parent company guarantee but we (the trustee) are the party to it. You, of course, already have a copy of it and have taken legal advice on it. In this regard, I can confirm that we have been in touch with the parent company periodically throughout the winding-up process, most recently a couple of weeks ago. Like us, they have been concerned about L&G's data handling and timescales but there is no suggestion from any of our communications that the parent company will not honour the guarantee. I am also aware that they are replying to your letter to the Toyoda President, if they have not already done so.

Finally, I can confirm that 15 December 2008 was the date on which the company entered liquidation, and therefore this is the date on which the wind up of the Scheme was triggered in accordance with the Scheme rules. I have attached a Companies House screen shot confirming the position below my email sign off.

I trust this addresses your queries. Please be assured that we are doing all we can to conclude the wind-up and buy-out of members' benefits successfully in Q2/2012.

Kind regards.

Philip W. SuttonDirector
For and on behalf of
The Trustee Corporation Limited

For the attention of Tadashi Arashima – President Toyoda Gosei.

Letter sent by air mail 31 October 2011 to Toyoda Gosei Japan.

Regarding Toyoda Gosei Fluid Systems UK Ltd Pension Scheme.

            I am writing to you to voice the concern of some of the former employees of the above company. When Toyoda Gosei decided to close this company in 2008, there was an expression of concern to the then employees that the closure should be as honourable as possible. Also, there was a guarantee from Japan that the above pension fund would be supported and any deficit would be fully funded by the parent company – Toyoda Gosei.

While we are willing to accept this funding of the scheme will still be the case (as I have a copy of the guarantee document legally enforceable in both the United Kingdom and Japan) we are duly worried about the capability of both the pension trustees (The Trustee Corporation – Hammonds LLP) and the original pension administrators (Legal & General) in carrying out the closure and wind-up of the scheme.

This has been going on for over three years now, there have been delay after delay, including extremely poor attempts at a data consolidation, without a satisfactory resolution and while I accept The Trustee Corporation may well be correct in the statement that there is no financial loss to The Members (the ex-employees), one thing that Toyoda Gosei should be concerned of is that while this continues there is additional costs involved which someone will be meeting, with no other visible source of funding I would expect that will be yourselves. So, it would be in your interest to oversee a speedy conclusion.

I, on behalf of some of The Members have attempted to persuade, coerce and push for a resolution but there is a general lack of urgency from both The Trustee Corporation and Legal & General.

Listed below are the names of The Members who I am representing: -

Miss xxxx xxxxxxxxxx

Mrs xxxxxx xxxxxxxxx

Mr xxxxxxxxxx xxxxxxxxxxx

Mrs xxxxxxxxxx xxxxxxxxxx

Mr xxxxxxxxx xxxxxxxxxxx

Mr xxxxxx xxxxxxxxxxxx

Mrs xxxxxxxx xxxxxxxx

Miss xxxxx xxxxxxxxxxxx

Mrs  xxxxx xxxxxxxxxx

Miss xxx xxxxxxxxxxxxx

Miss xxxxxxxxx xxxxxxxxxx

Mr xxxxxxx xxxxxxxxxx

Miss xxxxxxxxxx xxxxxxxxxxxx

Mr xxxxxxx xxxxxxxxxx

Miss xxxxxxxx xxxxxxxxxx

Mr xxxxxxxxxx xxxxxxxxx 

Mr xxxxxxxx xxxxxxxxx

Mr xxxxxxx xxxxxxxx

Mrs xxxxxxxx xxxxxxxxx

Mr xxxxxxxx xxxxxxxxxxx

Along with these people I have also been contacted by a firm of financial advisors who state that they are also representing a “good number” of pension members and are receiving similar treatment over this winding up.

Please could you respond to this letter stating what Toyoda Gosei are prepared to do to ensure a satisfactory conclusion to this?

I know that Toyoda Gosei would want this to complete with minimal fuss, however, should this continue along its present course of poor service, poor advice and poor reporting of the situation to The Members I feel the only option open will be to contact the national media (both newspaper and television) to air our concerns.

Yours truly,

Richard (Henry) Nichols

A comedy of errors? Or a deliberate attempt to annoy?

Email to both Jonathan Asher (Legal & General) and Philip Sutton (The Trustee Corporation Ltd) 22 October 2011

Dear Jonathan Asher

Thank you for the Trustees update statement which I received 21 October 2011.

However, rather than call you to express my concern I think that an email is more apt as I can publish this for others to view.

To say I was upset by your comment that you sent the original update letter to an address gleaned from an email dated 6 July 2011 is something of an understatement! Whatever possessed your company to ignore the held members data over an email? Surely the whole idea of any data integrity checking would be to validate the data rather than ignoring it and using other means! How many other members were written to at addresses other than those held in your data files? If mine was the only one, then WHY?!

This just highlights further the incompetence of Legal & General in handling the whole sorry episode. Why on earth would a company of your supposed standing issue this sort of letter to an email address when all along the given reasons for delays have been stated to be due in no short measure to data validations.

I would have thought it was glaringly obvious that any & all members addresses should be taken from your collated data, obviously this is not the case – or do you just please yourselves about which things to send to which individuals, and further to this pick & choose where to send them?

Before you answer this, I am aware of at least two more people who are still awaiting their updates.

Mr Xxxxxxxx Xxxxxxxx (and possibly his partner – formerly Ms X Xxxxxxx) and Mrs Xxxxxxx Xxxxxxxxx. Please check your records to see if these also were sent to other addresses than the ones you hold on file.

As the previous data integrity checks carried out have highlighted issues which you have consistently failed to resolve, I suggest to you that you are being negligent in your handling of the members information, so you can probably appreciate the members’ concerns over these delays (and possibly their doubts about your competence in handling their assets too!).

It is often mentioned in these communications that there is no financial loss to members in this, can you guarantee that the Parent Company is also suffering no financial loss over the time taken (and expenses accrued) for you and The Trustee Corporation to get your acts together?

My next action in all of this will now be to write to the president of Toyoda Gosei (Japan) to express the member’s displeasure over the whole handling of this pension closure. I know that they were very concerned over the closure of the company to ensure there was no adverse publicity. The Japanese do not like to lose face as I’m sure you are aware. It would be a major issue for them if this was to become an item of media attention.

Any communication with the parent company will be made available to both Legal & General and The Trustee Corporation.

One other point that I have not commented on before, but which I think needs to be raised – if just for clarification, is over the closure date of the company (and hence the scheme winding up). In all of your communications to date there is mention that “On 15 December 2008 the Company entered into members’ voluntary liquidation (a solvent winding up process) and the Scheme closed”. Where is this date taken from? I was employed by the Company up until & including 19th December 2008 (along with a number of others) and as far as I am aware this was the closure date! I know it is only a matter of five days, but again a data discrepancy nonetheless! 

Words fail YOU?

Received from Hammonds 18 October 2011

Dear Mr Nichols

Words fail me. I have written confirmation from Legal & General that the announcement was printed and sent on 7 October. Are you aware through your network that nobody has received the announcemnt or that some have and some haven't? Either way, you can be assured that I will be taking this up with L&G immediately. In the meantime, I will arrange for a copy of the announcement to be sent to you tomorrow.

Regards.

Philip W. Sutton

Waiting for paint to dry!

Email to Hammonds LLP Tues 18th October 2011

Mr Sutton,

Again I find I am having to write to you as Hammonds &/or Legal and General have failed to keep their word.

In your previous email you advised that you were preparing an announcement to all members of the scheme to be made within 10 days or so (29th Sept) – this time has elapsed with no announcement, or apology for there being none!

You really need to get your act together, and a plan of action would surely assist in this matter – another “promise” made to be published which has failed to appear.

Having a plan of action in place would enable monitoring of the whole situation, so I repeat an earlier offer, should you or Legal and General be incapable of producing such a document, we, the members can provide the expertise to generate (and manage) one!

I look forward to your response, announcement and plan of actions by return.

Some long awaited information, still no results

Dear Mr Nichols

Thank you for your email below.

I am pleased to answer your points as follows:

Member communication

I am aware of the requirements you have referred to from the TPAS website. We will be making an announcement to all members of the scheme in the next 10 days or so. This will cover all the required content.

Regulator Report

We are in the process of preparing the first wind-up report to the Regulator and this will be submitted shortly.

Other questions

In terms of the numbered paragraphs, rather than address each point individually, I am setting out some of the key points I made in a conversation with Steve Riley last week which I imagine you may be aware of already as these address all the issues you raise:

1. My view was that this was going to be a quick and easy wind-up exercise. Factors influencing my view included the following: (a) there had only ever been one company participating in the scheme; (b) the scheme was contracted-in to the state second pension (formerly known as SERPS); (c) L&G had always been the administrator of the scheme. There was no sign of the normal wind-up delaying factors such as having to agree contracted-out benefits with the National Insurance Contributions Office (which is normally the single biggest piece of work involved in a scheme wind-up). I made the tactical decision that L&G should continue in post as administrators of the scheme through the wind-up (why would I move from the people who knew the scheme inside out?).

2. We promptly moved to secure members' benefits with Aegon. This was concluded in January 2009. The annuity rate for the contract was fixed at that date. We also secured and documented a formal guarantee from the parent company (of which you already have a copy).

3. Members therefore do not need to worry about the recent volatility in equity markets, for example. Their benefits are to be secured / paid in full.

4. In the event, the service provided by L&G has been lamentable. For a long while they did nothing. When they did eventually apply resource to the scheme, the work was very often late and / or wrong.

5. Aegon have set 3 "rebalancing" slots for the scheme so far this year (this is the process by which Aegon will accurately calculate the final premium required to secure members' benefits). L&G failed to apply the necessary resource to come anywhere close to meeting the deadlines or requirements to enable us to proceed on the first two occasions.

6. We have escalated the scheme within L&G and received commitments about service going forward in particular working towards the third "slot". We have continued to receive poor service. In particular, Aegon have said the data L&G have been supplying is unfit for purpose. The data has improved but even at this very late stage, Aegon have raised significant concerns over the data and their ability to price the contract (hence our request for details about certain members' spouses of Monday - many thanks for your assistance in this regard).

7. The decision to retain L&G as scheme administrators was right at the time. In the event, they have done a poor job. I could appoint alternative administrators to do this work but that, in itself, would take time and cost and then the new administrators would have to start from scratch. My decision has been to retain L&G and endure the frustrations that decision has brought with it.

8. I have been faced with a decision about whether to finalise the buy-out with Aegon by reference to data which is unclear, incomplete in certain respects and inconsistent or to allow more time for the data to be perfected. My primary duty as trustee is to ensure that the members get the right benefits at the right time. Uncertain and incomplete data means that the benefits may not be right or that the price will be unnecessarily and avoidably high.

9. Having considered the position at length and consulted with the parent company's advisers, my decision therefore is that L&G should have more time to get the data (and hence members' benefits) right. This means that there will be a further delay in issuing members with a policy in their own name but, as I have said many times before, this does not mean that members lose financially.

We have yet to hear from Aegon as to the next available "slot" but, now that it appears that L&G have broken the back of the data work, I am hopeful that we will be able to conclude the process definitively at the 4th attempt. I will be arranging a further meeting with L&G to secure all necessary resource and to discuss the position generally.

I hope that this frank explanation of the issues we are facing is of assistance, even if it does not bring matters to the swift conclusion that you (and other members) hope for.

Yours sincerely.

Philip W. Sutton

From all of this I gather we are still no nearer a settlement, L&G are still a crap company to deal with and Hammonds LLP still appear to carry no weight in the negotiations. All in all, we seem to have been sold a pup of a pension scheme. I will continue to press for action, but don't hold your breath for a resolution any time soon.

Diana Ross had nothing on us! (Still Waiting!)

Tuesday 27 Sept 2011 (19:52) Response from Hammonds.

Dear Mr Nichols

My email to you is undergoing peer review and should be issued tomorrow.

Regards.

Philip W. SuttonDirector
For and on behalf of
The Trustee Corporation Limited

Needless to say, no response 28 Sept 2011 (Who'd have thought it?)

Information and Message to Hammonds 5th Sept 2011

http://www.pensionsadvisoryservice.org.uk/workplace-pension-schemes/final-salary-schemes/winding-up

There is information here regarding what is required in winding up a company pensions scheme.

Email message dated 05 September 2011

Mr Sutton,

I see from the tone of your last response that finally you are beginning to tire of my incessant pestering of you and your involvement in the TGFS Pension scheme, this is at least a relief - I was beginning to wonder if I was ever going to get through to you.

I will respond to your points in due course, firstly I would like to bring to your attention something I have copied from The Pensions Advisory Service (TPAS) website regarding a winding up of a pension scheme: -

The trustees also need to issue a progress report to members at least every 12 months thereafter.

These subsequent reports must give details of:

• Action being taken to establish the scheme's assets and liabilities;
• Action being taken to recover any assets not immediately available;
• The estimated date when final details of members' benefits are likely to be known; and
• The extent (if any) to which the value of the member's benefits is likely to be reduced (if relevant and the trustees have sufficient information to state this).

This clearly isn’t happening and hasn’t happened, the website goes on to state the following: -

For schemes winding-up after 1 April 2003, once the scheme has been winding up for three years, the trustees will have three months to submit their first report. Subsequent reports are to be made at least once every 12 months.

On request, trustees must provide members or beneficiaries with a copy of any report, which has been made to TPR (The Pensions Regulator) in connection with the wind-up. The copy must be provided within two months of the request.

As the winding up process was commenced in the summer of 2008, according to my calculations this has exceeded the first three year point so you as trustees ought to have submitted your first report to The Pensions Regulator, if so, I formally request a copy of this report forthwith, and if not I would like an explanation as to why this hasn’t occurred.

Regarding your points,

1, Whilst we agree that the scheme has the backing of a Tokyo listed company, according to information obtained, members should have had the option of transferring the funds of the scheme to a new pension provider, at the original meeting between yourselves and the members at the company premises we were advised to refrain from making any requests that would delay the process, this can be taken that had this option been available sooner, member would have been able to make further contributions which at present they haven’t, thus this can be taken as a financial loss.

2, We agree the scheme is winding up, however, the point made above is still valid.

3, We can understand the point that you share our frustration, however, you don’t appear to share the information!

4, We again take your point on this, the worry is that we only have your word that you are doing everything possible to expedite this, and our concern is that there doesn’t appear to be any concern over the time involved (notwithstanding the lack of information). And, no, we don’t want to spend money unnecessarily on anything, it is just that we feel that we aren’t getting a fair result presently, no information is forthcoming, deadlines appear to be reached, passed and nothing reported (like the data transfer recently – what happened?), basically, we are fed up of being fobbed off with false promises, lack of apparent actions and then expected to just sit and wait, this is our livelihood when all is said and done!

What happened to the plan of outstanding actions which was supposed to be imminent?

Rather than argue the points, and as any action might prolong the misery we are already subjected to, I’m not expecting you to respond to these points other than providing the information requested and overdue. Any failure to do so may be seen to be that there is something to hide.

Response from Hammonds 30th Aug 2011

Thank you for your further email. My comments are set out below:

1 The scheme (and hence, in effect, the members) have the benefit of a guarantee from a Tokyo listed company. I assume that you have passed this to the solicitor you have consulted. This means that members should suffer no financial loss. Does your solicitor disagree?

2 I note that you have also consulted a "pensions administrator" who has indicated that the members' inability to invest or add to funds is a potential loss. They are missing the point. The scheme is winding-up. It can accept no further contributions. In addition, the scheme has the benefit of a guarantee and members' benefits are being bought out in full. The only way members could invest or add to these funds would be to transfer them to some form of defined contribution pension contract and so expose the funds to (a) investment risk until they retire and (b) the risk that annuity rates harden (as they have consistently done over many years) so weakening the purchasing power of their fund. It would be a somewhat unusual action to take in the circumstances.

3 Assuming members suffer no loss, the members' complaint relates to the time it is taking to conclude the winding-up of the scheme and issue individual policies to them. As I have stated many times, we share this frustration. Whilst the delay is frustrating, I reiterate - there is no loss. Do members understand this?

4 Members are, of course, free to initiate whatever action they consider appropriate. However, as the concern is about timing, member action will simply add to the time it takes to conclude the winding-up of the scheme. You are already familiar with how long a Pension Ombudsman investigation can take. Multiple actions would probably further increase timescales , as in all likelihood the buyout could not complete whilst investigations by regulatory authorities are ongoing. In short, member action is likely to further lengthen the process rather than speed it up and as such would seem to be self defeating. Do members really want to spend money on this?

I am awaiting confirmation on the status of the data and will update you when I know more.

Further reply to Hammonds and a follow-up response

Dated 25/08/2011

Philip,

Further to my response to this email, along with consulting with a solicitor, I have also been in contact with a firm of Pension Administrators, and whereas you are stating that there is no financial loss to the members in all of this, the opinion is that “As the scheme is undergoing a block transfer - irrelevant of who the Trustees are - the members inability to invest or add to funds is seen as a potential loss”, to this end I feel I (we) have grounds to appeal to either the FSA, Pensions Arbiter or Pensions Ombudsman (or all three).

In light of this I appeal again for Hammonds LLP, L&G and Aegon to get their acts together and resolve this at the earliest opportunity, to also produce the plan of outstanding actions and the plan to expedite these actions forthwith.

Failure to respond to this request within a reasonable period of time will be viewed as positive grounds for the

members to lodge their complaint via the IDR and FSA at one and the same time.

Dated 30/08/2011

Dear Mr Nichols

Thank you for your further email. My comments are set out below:

1 The scheme (and hence, in effect, the members) have the benefit of a guarantee from a Tokyo listed company. I assume that you have passed this to the solicitor you have consulted. This means that members should suffer no financial loss. Does your solicitor disagree?

2 I note that you have also consulted a "pensions administrator" who has indicated that the members' inability to invest or add to funds is a potential loss. They are missing the point. The scheme is winding-up. It can accept no further contributions. In addition, the scheme has the benefit of a guarantee and members' benefits are being bought out in full. The only way members could invest or add to these funds would be to transfer them to some form of defined contribution pension contract and so expose the funds to (a) investment risk until they retire and (b) the risk that annuity rates harden (as they have consistently done over many years) so weakening the purchasing power of their fund. It would be somewhat unusual action to take in the circumstances.

3 Assuming members suffer no loss, the members' complaint relates to the time it is taking to conclude the winding-up of the scheme and issue individual policies to them. As I have stated many times, we share this frustration. Whilst the delay is frustrating, I reiterate - there is no loss. Do members understand this?

4 Members are, of course, free to initiate whatever action they consider appropriate. However, as the concern is about timing, member action will simply add to the time it takes to conclude the winding-up of the scheme. You are already familiar with how long a Pension Ombudsman investigation can take. Multiple actions would probably further increase timescales , as in all likelihood the buyout could not complete whilst investigations by regulatory authorities are ongoing. In short, member action is likely to further lengthen the process rather than speed it up and as such would seem to be self defeating. Do members really want to spend money on this?

I am awaiting confirmation on the status of the data and will update you when I know more.

Yours sincerely.

Philip W. Sutton

It would appear that at last Hammonds LLP are getting tired of me harping on at them, however, there is as yet no indication of a completion date set in the sand, nor appearance of any plan of action promised earlier!

Reply to Hammonds Tues 23/08/2011

Philip,

Please see extract from email from Jonathan Bradshaw to myself dated 14/07/2011

Dear Mr Nichols

Further to my email below I just wanted to let you know that we have not been made aware of any issues with the data which has been transferred by L&G to AEGON.

L&G and AEGON are in the process of finalising the target dates for the project plan and we shall ask L&G to circulate the completed plan as soon as it is ready.

Kind regards

Jonathan

It would now appear this data transfer was either insufficient, incomplete, did not happen or is considered to be a figment of my imagination? Surely there was or wasn’t any issue with this, if there was then I would hope you would have informed us of the errors or problems, if not, why is there a new data checking exercise? Secondly, we are still awaiting any sign of this plan of action.

This really is beyond a joke now. I have been in touch with a firm of solicitors and have been advised that “in their experience in cases that drag on like this, there is generally an underlying problem yet to surface”.

I really do hope this isn’t one of those cases.

Further to this, I am now contacting as many members as I can in order to secure funding to enable the legal firm to act on our behalf. 

Reply from Hammonds 23/08/2011

Dear Mr Nichols

I refer to your email below and your letter of 19 August and apologise for the delay in this reply.

By way of update, Legal & General and AEGON are currently undertaking a data checking exercise, which is due to finish on the 26th August 2011. Assuming we get the all clear on the accuracy of the data, in accordance with the current timetable, members' benefits will be bought out and a top up payment received from the Japanese parent company by 10 October 2011. If there are still problems with the data, we understand that this may put this timescale back to next year as the scheme would miss its "slot" with AEGON. Given the history of difficulties and inaccuracies with L&G's administration, I have been keen not to make commitments I cannot keep. Accordingly, once we have confirmation on the status of the data (which should be later this week), we will advise you of the timescales for concluding the wind-up process and issuing of policies to members.

You already have a copy of the guarantee given by the parent company. Whilst I sincerely hope that there will not be any further data driven delay, I would remind you that the presence of the guarantee means that members should not suffer any financial loss.

Yours sincerely.

Philip W. Sutton

It would appear the data check earlier either wasn't sufficient, failed or has been totally forgotten! I will be asking further questions.

 

The Story So Far

Hi All, this is a copy of all previous email conversations etc with dates where possible, after this I will post a second entry with an update I have received today.
Happy Reading (Not!)
All communications from either myself or other ex TG employees in black
All communications from either Hammonds LLP (Trustees) or L&G are in blue.



Dated 21/11/2010

Dear Stephanie,

I have been receiving undertones of disquiet regarding the length of time it is taking to finalise the above pension closure and setting of the individual accounts. Although I do understand some of the issues involved regarding incorrect tax references and changes of name etc, However, I really do think that the bulk of the members could be closed out without too much problem. Is it not possible to set the problems aside and complete the ones that can be done?

Failing this, please could you let me have some sort of timing plan and update on the current situation that I can pass on to people concerned?

Dated 23/11/2010

Dear Mr Nichols

Thank you for your email. Apologies, but I have not been in the office.

As you mentioned, there are some outstanding issues which must be resolved, including checking all the data, and reconciling the data we have with the data held by HMRC. We are hopeful that this will be resolved quickly, as the scheme has always been administered by Legal & General, and this should reduce the 'normal' problems usually experienced with data. The wind up process will be completed by way of bulk exercise and therefore all members dealt with together.

The other main issue outstanding concerns GMP equalisation, whereby the Government has stated that schemes should equalise members' guaranteed minimum pensions. Whilst currently this would only appear to be obligatory for underfunded schemes which are winding up and being taken over by the Pension Protection Fund or the Financial Assistance Scheme, the Department of Work and Pensions indicated that any legislation introduced should apply to all schemes and in their view trustees should equalise GMPs. This being the case, it is something which the trustee cannot ignore. However, we are hoping to avoid having to carry out this timely and expensive exercise by taking out insurance.

There is a conference call with the advisers next week, following which we should have a better indication of timeframes.

Kind regards

Stephanie

Stephanie Wigman

The Trustee Corporation Limited

Dated 07/12/2010

Dear Jonathan Bradshaw,

In response to the explanation from Stephanie below, and as it is now over two weeks since the communication, I expect the said conference call has occurred. So I would respectfully request an update on the situation, i.e. the outcome of the conference call, as explained that there should be a better understanding of any and possibly all timeframes.

In this respect I would also like to place on record my dissatisfaction with the service that has (or, more likely, has not) been given to the members by Hammonds LLP in the winding up of this pension fund. This is not something I have prior experience of, but I do consider that the timescale of over two whole years is an astonishingly long period for the members to be waiting for a resolution. I estimate that there has been no general communication since April 2009, that is over 18 months which in itself is totally unacceptable. I trust you can understand the feelings that the members are expressing amongst themselves and to me?

In my current employment I meet with other ex-employees on quite a regular basis, and this is always the first topic of conversation that is raised.

Do you not think it would be beneficial to release an advisory letter and apology, explaining what the delays have been, where the current situation finds us, and what the future plan of action is?

Also, please could you advise (or, perhaps Jeff Lee could?), what the situation is regarding the Toyoda Gosei Japan promise to ‘top-up’ any shortfall, as was promised, is this still to happen?

Regards

Dated 08/12/2010

Dear Mr Nichols

Thank you for your email to Jonathan below. We note the concerns you have raised and shall deal with these in a full response by the end of the week.

Kind regards

Stephanie

Dated 10/12/2010

Dear Mr Nichols

Unfortunately, the advisers pulled out of the call (due to the weather conditions) and are due to provide a written, full, update on the progress they have made with the outstanding tasks.

We note your comments and appreciate your and the other members' concerns. I can confirm that Toyoda Gosei Japan have generously agreed to support the scheme and therefore members should receive their entitlement in full. We had been hoping, over the last few months, that 'imminently' we would be able to communicate with the members that the wind up was nearly complete and giving concrete timeframes and information about the situation going forward with AEGON and therefore postponed issuing any communication until such time. Unless Legal & General provide a full response shortly, we will issue a brief update we have drafted to members, as it is. If they do provide an update, this will be incorporated into the communication.

Thank you for your continued support to the members of the scheme.

Please do not hesitate to call me to discuss.

Regards

Philip W Sutton
Director, The Trustee Corporation Limited

Dated 12/12/2010

Dear Mr Philip Sutton,

Well, words failed me for a while there! I have until now been under the impression that a conference call was a method of communicating between a number of people without them having to travel to a meeting!!

In that ideal world the location of the callers would be immaterial, the call could come from where-ever they were located.

In essence, this sounds like a poor excuse to me.

I note also that you (Hammonds in general) have received an email recently from Steve Riley requesting that you consider setting up a meeting between yourselves and the members. This sounds quite a reasonable suggestion under the circumstances, I suggest this should happen, and that you also invite these advisers along too!

As Mr Riley suggests, the amount of time this it taking, without any real or proper communication on the matter is totally unacceptable now.

I trust I will hear back from you by return.

Dated 12/12/2010

Dear Mr Nichols

As you would expect, I made exactly the same point about conference calling to L&G. This was their response:

"I can appreciate your frustration but we are facing extenuating circumstances today in that there have been major weather issues and I am currently engaged in other activities concerning keeping the service running for all of our customers, and also ensuring that the people who work for us are safe as well.

In addition, I have no papers or any information about the scheme whatsoever with me, so in my view the meeting would not add value."

Very frustrating. Hence our request for a full written update (which we have still not received). We continue to press for the update but I trust you appreciate that our hands are tied until we have information.

Regards

Philip Sutton

Dated 13/12/2010

Dear Andrew Pike,

I am writing under the complaints procedure as laid out in your email to me dated 29 November 2010.

This is in regards to the treatment of all the members of the Toyoda Gosei Fluid Systems UK Ltd Pension Fund.

As stipulated, complainants name:

Richard Nichols – status, member of the above scheme, acting on own behalf.

The name of the matter: -

The Toyoda Gosei Fluid Systems Pension Scheme.

The Hammonds relationship partner: -

Legal & General (or Mr Philip Sutton) not quite sure what I am being asked for here!

Description of the complaint: -

This is notwithstanding any other matter I may have outstanding with Hammonds LLP, this being the matter that there appears to be an apparent disregard of the members interests such that there has been no communication regarding the actual state of the scheme for over 18 months.

When the original timeline drawn up in 2008 the members were advised that the whole wind-up of the scheme would (or should) be completed by, at the latest, late 2009. This time-line also stated that during this period we (the members) would be kept informed at key stages of the process. None of this appears to have occurred to plan.

I feel that any email either I or, another member – notably Mr Steve Riley, are being just acknowledged and then ignored, the scheme doesn’t seem to be any further to a completion than it did when Hammonds LLP visited Toyoda Gosei in early 2008! All emails are being responded to, but no answers given.

Dated 15/12/2010 (From Steve Riley to myself)

Hi H,

I spoke to Stephanie yesterday. She didn't really have anything positive to say. I did manage to get her to agree that members will receive communication in writing by the end of Jan latest whether she has new news or just a holding letter.

It seems they simply blame L&G, we need to speak to them!

Regs,

Steve

Dated 16/12/2010 (To L&G)

Hello,

I am attempting to gain a solution to a long-standing issue regarding the following pension scheme wind-up: -

Toyoda Gosei Fluid Systems UK Ltd Pension Scheme. (Our reference from Hammonds LLP G99596)

I understand from Hammonds LLP that there is some sort of issue with communication between yourselves and Hammonds. The wind-up has become something of a legend with the members of the scheme, the timing plan has been totally shot!

The initial notification on the closure of the company, hence the winding up of the scheme occurred in early 2008, so at the moment the process has taken over 2 1/2 years! This is totally unacceptable to the members and I am writing to yourselves direct as Hammonds LLP don’t seem capable of progressing the issue.

Please could you respond with information on the current situation, a new timing plan for the total wind-up and the purchase of the personal annuities and an explanation as to the reason for all the delays.

The latest information I have from Hammonds LLP is that you are dragging your feet over this and the best we can expect is a general update by the end of January 2011, this is completely unacceptable. I have raised a complaint with Hammonds LLP using their complaints procedure and would also like details of yours so I can raise one with yourselves.

I trust this is within your capabilities and expect a full and complete response by return.

Kind regards

Dated 23/12/2010

Dear Mr Nichols,

I refer to your email of 13 December in respect of this matter. I have investigated your complaint and in particular spoken to my Partner Philip Sutton who has conduct of the file.

Philip has explained the background to the Scheme to me. As I understand it, Toyoda Gosei Fluid Systems UK Limited (the “Company”) closed down its business via a members' voluntary liquidation on 15 December 2008 and this triggered the wind-up of the Scheme. The Company's Japanese parent company guaranteed that members would receive their benefits in full meaning that all members should receive 100% of their entitlement under the Scheme.

Philip advises that since its establishment up to the the time of the liquidation, the Scheme was administered by Legal & General ("L&G"). Shortly after the wind-up commenced, the trustee chose to buy-out members' benefits with AEGON (having considered proposals from and met with a shortlist of companies created by its advisers). An initial premium was paid to AEGON to secure the bulk annuity. As I understand it, the final premium can only be agreed and paid once all the data queries have been resolved. This work is carried out by L&G (which holds the membership data) and AEGON. The trustee does not carry out this work.

As the Scheme is a single employer scheme and has only ever been administered by L&G, Philip was initially hopefully that the data queries could be resolved within a year. However, the service received from L&G has, to say the least, been less than satisfactory and despite Philip and his colleagues chasing for progress reports and updates on many occasions, L&G has not provided the trustee with a progress report for many months. Philip suspects that one of the reasons for this is that L&G has come under Government and regulatory pressure to target its resources on schemes which are in either the Financial Assistance Scheme or the Pensions Protection Fund. These are for schemes where there has been sponsoring employer insolvency but, unlike the Scheme, there is no "white knight" to help secure members' benefits.

Based on my conversations with Philip, I am satisfied that he and his team take the lack of progress by L&G very seriously. Philip's is scheduling a further call with L&G in early January and will issue an update to members following that call. Whilst the delays which are being experienced are frustrating for members and the trustee alike, Philip remains grateful for Toyoda Japan's support for members' benefits which should ensure that all members get their benefits in full.

Kind regards

Andrew Pike
Partner
Corporate Strategy & Finance (CF)
Hammonds LLP 

Dated 29/12/2010

Dear Mr Nichols

I confirm that there is a conference call between Trustees, AEGON and Legal & General scheduled for Thursday next week. I expect the Trustees will be sending a further update to members shortly. I will ask the Trustees to keep you informed accordingly.

Regards

Jonathan

Jonathan Asher
Discontinuance Account Manager
Workplace Savings
Legal & General Assurance Society Limited

Dated 29/12/2010 

Dear Mr Asher

First, thank you for your letter dated 22 December 2010 in response to my web enquiry.

Whilst I appreciate your comments and understand the correct line of complaint I should make, I feel that you should be aware of the following statement received from the Trustees Internal Disputes Resolution process.

As you will see, I have already taken that course of action and resorted to contacting L & G through the web out of frustration and desperation. The previous communication I had from them was regarding a scheduled telekit which never happened due to the poor weather conditions recently.

From the comments below it would seem that the Trustees are laying the blame for lack of communication squarely at your (and AEGON’s) door!

My next course of action will be with the Pensions Arbitrator, although this may be carried out by another of the members as I already have one case against the Trustees pending and wouldn’t want to appear to be trying to curry favour.

Dated 10/03/2011

Dear Mr Nichols

Thank you for your email. The scheme records will be updated with your new address.

We are working on an announcement to members and this will be issued shortly.

Regards.

Philip W. Sutton

Dated 10/03/2011

Dear Philip,

Firstly, thank you for the prompt response and updating my address details.

However, your note that you are working on an announcement is, frankly, way short of the requirement now.

There has been a consistency of missed dates right from the initial announcement and I am looking for something more than that now.

In conjunction with the two people CC’d on this email I would like to formally request a meeting between us (as representatives of The Members), Hammonds LLP (or SSD), AEGON and Legal & General.

A date and central location may be of your choosing and please allow at least seven days notice to enable any diary changes required.

I think this will be an opportunity for both sides to understand the others concerns.

Thanking you for your continued attention

Dated 12/03/2011

Dear Jonathan Asher,

With regard to your ref:

WS/K214/FS Disc.AM/JMA/G99596

Mr Steve Riley has forwarded a copy of your letter dated 25 February 2011 in which you mention another letter dated 31 January 2011, enclosing an announcement and data verification from the Trustee.

Please can you explain why these letters haven’t been sent out to all members? I have not received any announcements to either my old or new address!

There are certain people on the list of names who I could possibly contact or get to contact yourselves.

I expect a satisfactory explanation by return (and a copy of any letter not forwarded)!

Dated 14/03/2011

Dear Mr Nichols

I do apologise that you did not receive the announcement and verification form. I confirm that I posted a copy of the announcement and enclosures to your new home address on Friday so this should arrive in this morning's post. The reason which you and one other member did not receive the announcement was the fact your records were both in the wrong status on your administration system and where ommited from my data scan. I arrange for this to be rectified on Friday and apologise once again for this error.

Regards

Jonathan Asher
Discontinuance Account Manager
Workplace Savings
Legal & General Assurance Society Limited

Dated 15/03/2011

Dear Jonathan Bradshaw

Please take this as receipt of letter from LandG regarding an update to the above pensions detail.

I am appalled that my details were “in the incorrect status”, especially after all the communications that had been happening between us and would, ideally like an explanation as to why this was.

However, I have completed this (second) checklist and it will be in the post to Jonathan Asher first thing tomorrow.

I have read through the Q&A section and have one further question on this: – If early retirement is chosen as an option after the AEGON buy-out, am I right in assuming this would be automatically available at aged 55, and not subject to any agreement by The Trustees OR AEGON?

In regard to the list of names who it has not yet been possible to contact, I am again puzzled – the list sent to me differs somewhat from the copy I received from another member – Steve Riley. Are both lists current?

I cannot believe Mr Cooley hasn’t been contactable, especially as I have been copying him in on a number of my communications with yourselves. I will email him (and his partner – who is another on my list) to suggest he contacts you.

A lot of the others I have been able to contact via facebook network, and I will again attempt to with the new names on this latest list.

I look forward to hearing from you in due course. Sooner rather than later.

Dated 17/03/2011

Mr Bradshaw,

Receipt acknowledged.

However, regarding the member database being set incorrectly, and the fact that L&G as the Scheme’s administrator issue members communications I would draw your (Company’s) memory back to the spring/summer of 2009 when I was previously not receiving these communications and I queried this, I was advised that it had been dealt with and apologies were issued.

It is simply not good enough to offer apologies (again & again) and expect the ordinary Joe Public to accept this, you and L&G are supposed to be the professionals in this area and the failing lies with Hammonds too as the Trustees! I suggest you put steps in place to prevent this happening to other poor unsuspecting individuals in your & L&G care.

Therefore, I repeat the request for a meeting between yourselves, L&G and AEGON (if necessary), at a venue to be decided by yourselves but mutually agreeable with our (the members) representatives.

Lastly, I’m afraid you have either avoided to answer or missed my point regarding the early retirement question, notably: -

I have read through the Q&A section and have one further question on this: – If early retirement is chosen as an option after the AEGON buy-out, am I right in assuming this would be automatically available at aged 55, and not subject to any agreement by The Trustees OR AEGON?

What I need to know is: – do or would AEGON honour the current 55 age for taking early retirement? Or is there / would there be a possibility that this would not be honoured?

If you cannot answer this I suggest you contact AEGON and find out, it is an important aspect for not only me but other members too over the coming years, I would hate for them to find out earlier promises are null and void! (You mentioned in your response that there would be a new agreement between the individual member and AEGON upon AEGON’s terms (not the members, or terms set by Toyoda Gosei).

I am not willing to wait until the “deal” is finalised to find this is contrary to the current situation.

I hope you are getting as sick of responding to me as I am of continually harping on, but I trust you understand this is our (the members) livelihoods we are dealing with here and I would hope and expect you are as keen as I am to resolve these issues and complete the transaction.

Dated 18/03/2011

Dear Mr Nichols

Thank you for your email. I have considered the points you have raised and drafted a reply which is being reviewed by one of the trustee directors. We shall revert to you with our response early next week.

Kind regards

Jonathan

Dated 21/03/2011

Dear Mr Nichols

Thank you for your email.

I have now had an opportunity to consider your queries and I have set out my response below.

We are as infuriated as you are at some of the very basic administration errors which have occurred, for instance, as to the member contact database. It is unacceptable that you did not receive the latest announcement to members directly. As trustee, our duty is to pass on information received regarding a member's change of address to the administrators. We do so in good faith that the change will be duly recorded and the updated details used when we next communicate with members. We do not know that there is a problem until later when, as now, it becomes apparent that you did not receive the recent announcement. The fact that the administrators do update their records (and pointing to the "patchy" service we / members receive) is evident from the difference in the missing member list you received compared to other members (which shows that the administrators did update their records for various members). Short of doing a line by line check through all aspects of the administration of the Scheme (not just member addresses) with the administrators, it is not realistic or cost effective for us as trustee to have a such a hands on involvement in the data. This is not to say that we are complacent. We have raised numerous complaints with L&G regarding the standards of service they have been providing and have done so again in relation to this incident. We have - again - been assured of an improved level of service.

We could, theoretically, change the administrators but this would add several months (at least) to the conclusion of the project and a significant amount of extra cost. Our view is that members' interests are best served by concluding the project sooner and not introducing elective delay.

As regards a meeting, I trust that it is abundantly apparent that we share members' concerns regarding the length of time being taken to complete the buy-out and the administration issues which have arisen. On this basis I do not feel that the meeting you are proposing, whilst understandable and well intentioned, is likely to add anything. As trustee, I am also keen that L&G apply all available resource to furthering the buy-out project. A meeting would, I believe, be a significant distraction from the core activity the trustee and members need L&G to be focussing on. In addition, the position remains that members' benefits are being secured in full. We will continue to push L&G re the outstanding aspects of the buy-out project and monitor them on service levels.

Finally, in relation to early retirement I confirm that once individual policies have been issued by AEGON to members, members will have the opportunity, from age 55, to take early retirement without any requirements for consent.

Kind regards

Jonathan

Dated 22/03/2011

Dear Jonathan,

please advise if we are still on track for the AEGON buy out to be finalised in May (2011) and subsequent individual policies to be received by end of August (2011).

If there are any suspected delays please provide details and confirm what is being done to negate them.

I will appreciate a response by 31st May 2011 (1/2 way through the last advised remaining duration).

Thanks in advance,

Steve Riley

Dated 08/04/2011 (To Steve Riley)

Steve

I confirm that we are currently on track for members to receive their policies by the end of August but we are clearly reliant upon third parties in order to achieve this deadline. We shall do all that we can to ensure that there is no slippage in relation to this timescale.

Kind regards

Jonathan

Dated 13/04/2011

Jonathan,

Thank you for the update. However, I must also respectfully request that we be kept informed in the event of any failure of the process which could result in a slippage of the expected date.

I really don’t expect to reach the projected date only to find there has been an issue which has caused a further failure.

I trust this is in order and not beyond the capability of your process.

Kind regards

Dated 14/04/2011

Henry

Thank you for your email. We have recently held a conference call with the administrators and the buy-out provider and everything is currently on course. I confirm that we shall keep you updated in relation to any issues which are likely to cause a slippage of the expected deadline of the end of August.

Kind regards

Jonathan 

Dated 12/05/2011

Hello Jonathan,

I have recently located xxxx xxxxxxx and have given him the contact details so you should be hearing from him shortly. I think a number of outstanding members should by now have contacted you, please could you forward me an update of outstanding members (facebook seems to work pretty well in this area so far)

Kind regards

Dated 15/05/2011

Philip, Denise,

In light that Jonathan is unable to respond, there is a reunion for ex GVC/EP/TGFS employees next friday, please could you forward me a list of names of people you have still been unable to contact and I’ll pass it around amongst them.

Thanks

Dated 16/05/2011

Dear Henry

Your email was forwarded to me in Jonathan's absence, as Jonathan is currently on paternity leave.

Many thanks for your continued assistance with locating the missing members. I have asked the administrators to forward an updated list to me, which I will forward to you upon receipt.

Many thanks

Kind regards

Stephanie

Dated 18/05/2011

Henry

Please find attached the updated list received from the administrators (xxxx has obviously been located, and can be removed).

Many thanks

Kind regards

Stephanie

Dated 18/05/2011

Hi Stephanie,

Are you convinced this is the latest list? It appears there are more on this than the last one I received – and I’m pretty sure x xxxx has made contact (quite a while back!)

Kind regards

Dated 20/05/2011

Henry

Apologies for the delay with my reply, I have been unwell and out of the office. I have asked the administrators to verify their records and I will let you know the outcome.

Kind regards

Stephanie

Dated 25/05/2011

Henry

Further to Stephanie's email below I confirm that Mr xxxx had been in contact and I forwarded his details to L&G. I received an email from L&G dated 8 April confirming receipt of these details so Mr Icer's inclusion in the list of 18 May was clearly an oversight by L&G. I shall re-send Mr Icer's details to L&G and ask them to remove him from the list as part of their verification process.

Kind regards

Jonathan 

Dated 26/05/2011

Jonathan,

Thank you for the update on this matter.

However, I’m sure you will understand my concern, this is yet another “oversight” and delay over this process. Please could you respectfully request L&G check for any other “oversight” and then come back to me with a definitive list of outstanding contacts. I have spent a lot of time over this process, at no cost, and don’t really expect to be contacting people who have already been in touch with either yourselves, or L&G. It makes me look as unprofessional as this process!

As it is now passed the point of the TGFS / GVC / Eagle Picher reunion, there is no real urgency to this request, although I would expect an answer with the new outstanding contacts by the end of next week? (03/06/2011)

Thank you

Dated 01/06/2011

Henry

Further to your email below L&G have provided us with the attached updated list of missing members.

Kind regards

Jonathan

Dated 13/06/2011

Dear Jonathan,

I have recently been able to contact a handful of the outstanding people who have previously not been contacted.

You should have heard, or be shortly hearing from: -

Mr x xxxx

Mrs x xxxxxx (or xxxxxxx, or xxxxxx – depending on which name she now uses)

Miss x xxxxx

Mr x xxxxxx

These were all outstanding from your recent communication of 27th May 2011.

Please can you confirm you are still on tract for a completion by August 2011?

Kind regards

Dated 16/06/2011

Dear Mr Nichols

Thank you for your email. In relation to the list of missing members I confirm that, since we circulated the latest version of the list, I have heard from the following members:

Ms x xxxxx;

Ms x xxxxxxx; and

Mr x xxxx.

I expect I shall be hearing from Mr xxxx and Mr xxxxxx shortly. Thank you again for your continued assistance regarding this matter.

In relation to a progress update I confirm that, based upon on an exchange of emails on 13 June between L&G and AEGON, it is looking likely that completion is likely to be delayed by a couple of months. Our understanding is that the delay lies with L&G as the information they have provided to AEGON is incomplete. As a result we have missed our pre-arranged slot with AGEON to recost the Scheme. We are awaiting confirmation from AEGON regarding their next available slot. Needless to say we are extremely angry at this latest incident of poor service by L&G. Philip has already raised this with L&G's senior management and has also secured a face to face meeting with them to further voice our concerns.

I appreciate that you will be disappointed by this latest delay but please be assured that we, as the scheme's trustee, share the frustration of the scheme's membership. Unfortunately we are totally reliant upon L&G, as the scheme's administrator, to perform its functions adequately and to provide all the required data to AEGON.

Kind regards

Jonathan

Dated 16/06/2011

Dear Jonathan Bradshaw,

as you will probably have guessed, I am extremely disappointed and angry to hear of this latest delay. It would appear to me that L&G are something of a liability! As we, the members appear to have no recourse with them directly, we have been relying on yourselves to bring about a quick resolution.

I see Philip Sutton has requested a face-to-face meeting to air your concerns. I respectfully request that Chris Cooley, Steve Riley and myself are invited to participate in this meeting.

More than this, I insist!

The situation appears to be being dragged out more and more, and we would like to assure ourselves that there are no more delays. The original time line was for approximately 18 months maximum from the original notice that the scheme was to close, this would have taken us up to September 2009, we will now be passing September 2011 without an end in sight and this is wholly unacceptable.

We have previously accepted your assurances that you were doing everything in your power to resolve this matter speedily, but again we don’t appear to be seeing any evidence of this.

We would also like to be assured that Toyoda Gosei is still going to fulfil their pledge to make up any deficit as the time is extending somewhat, it would be a disaster for the scheme if that wasn’t so. I do understand that the pledge was made in good faith but I would also like to point out that there has been a major natural disaster in Japan and we need concrete assurances this all will not effect our pensions.

I anticipate a response by return.

Dated 18/06/2011

Dear Mr Nichols

Thank you for your email.

As you know, we share your concerns. I'm not sure that members need to be at the meeting with L&G. The trustee will be there representing the members interests [L&G getting the job done in a timely fashion / doing it right]. A good deal of the meeting will also be taken up with individual member issues which creates data protection issues.

As regards the parent company top up, we have been in communication with Jeff Lee about this in recent months. There has been no suggestion that the recent events in Japan are ina any way impacting on TG Japan's ability or willingness to make the payment. Indeed, our understanding is that the parent company is keen to clear the guarantee off its books (ie settle up on it) as part of a global "tidy up" initiative. The guarantee is a legally enforceable document so I have no concerns about the top up payment although I will, of course, be much happier when cleared funds appear in the scheme account.

Regards.

Philip W. Sutton

Dated 21/06/2011

Dear Philip,

Once again thank you for your response.

We (the members) are aware that you share our concerns, but I am anxious as you do not have the same vested interest in this as we, the members do. This is part of a job to you, to us it is part of our livelihood!

To this end, and taking into account your reservations of allowing any of the members access to a meeting, (and the time-frame that has elapsed in comparison to your original time-line) I would like to put forward the following proposals:

Firstly, that minutes of any and all future meetings regarding this pension scheme are made available to us (the members, through a response to the non-Hammond or ‘SSD’ addressees of this email) whether these meetings are internal to Hammonds, or include any external parties (L&G / AEGON etc.), secondly, all outstanding actions are tracked and progress-checked on a weekly basis, and also reported to us immediately through the same medium, with any slippage or new concern having appropriate counter-measures in place, i.e. treat the whole process like a full-blown project – I hope that either you or L&G have access to staff capable of project-management.

This is a “must-have” now, due mainly to our reservations that the whole process is within your control. We (the members) can offer project management skills if this is beyond capabilities.

Thank you also for your update from Japan, though this is also something we are still extremely concerned about and, to this end, we would like a copy of the guarantee agreement to check on its legality and enforceability.

The general feeling of the members I am in touch with (over 30 on a regular basis) is of the impression that we are at best being poorly treated, and that there ought to be some recourse open to us. I am aware of your complaints process, would it be appropriate in this instance? I am also aware that the initial mechanism is internal so wouldn’t expect any positive outcome on the members behalf, and was thinking more along the lines of an appeal to either the Pensions Arbitrator and/or Pensions Ombudsman – would these be pertinent in this instance as you are trustees rather than the pensions providers?

All-in-all, we would like to express a total dissatisfaction with the service Hammonds and L&G have provided us with, right from the initial meeting with the members back in 2008, nothing has been according to your original plan, and some of the information coming from L&G has been way off the mark.

With regards

Dated 05/07/2011

Message dated 5th July 2011

Dear Mr Sutton, Mr Bradshaw & Mr Asher

It is now 14 days since my last email and I am still awaiting a reply. I am becoming more and more impatient with the treatment the members are receiving at your hands.

I insist that you respond to the previous email by return, detailing the complete plan of action with timeframes involved.

Second to this, if my memory serves me correctly, L and G are supposed to service the members with an annual statement of their entitlement each April. As it is now July this is also well overdue!

Could this also be rectified forthwith?

Dated 06/07/2011

Dear Mr Nichols

We met L&G on 30 June. I have been out of the office since then until yesterday when I prepared a reply to your email which should be reviewed today. As you will have seen, I am out of the office for the next 2 days also, so Jonathan (B) will be issuing the reply.

In brief, (i) L&G are preparing a project plan which we re inputting into. This will be reviewed and updated weekly. We will share this with you and (ii) we are sending you a copy of the guarantee (excluding member details).

Regards.


In brief
Sent from my BlackBerry

Philip W. Sutton 

Dated 06/07/2011

Dear Mr Nichols

Your email dated 13 June 2011 was addressed to Jonathan Bradshaw so I would not have replied to it.

With regards to the annual benefit statements, this exercise would have occurred after April each year while the scheme was inforce to all members who were still accruing pension benefits. However since the scheme has discontinued the requirement for annual renewal statements is no longer in place as all the members have preserved benefits. Once the buy-out with AEGON has been completed, AEGON will issue all the members with a schedule of benefits which have been secured with them.

Regards

Jonathan Asher

Dated 06/07/2011

Dear Mr Nichols

Thank you for your email.

I confirm that we have had a meeting with the person in charge of L&G's Final Salary operations. We discussed the many concerns and complaints that both we and the members have raised in relation to the level of service provided by L&G in relation to this scheme. They conceded that they have fallen well short of their usual standards and while it did not excuse their unsatisfactory level of service they confirmed that there had been internal issues such as key members of staff going on sick leave, lack of resource and poor communication between internal L&G departments. L&G confirmed that they were taking these issues very seriously, they have spoken to some of the members of staff involved and they will be monitoring progress closely.

In relation to the remaining actions, I confirm that L&G are producing a project plan detailing the remaining tasks which will be updated on a weekly basis. I confirm that you will be included in the distribution of this plan. In the meantime, I can confirm that L&G have now supplied the data to AEGON. We have yet to hear from AEGON if this is fit for purpose and when the next recosting slot will be. Needless to say, we will do all we can to ensure that all parties meet the project plan.

In terms of possible action by members, this needs to be seen in the context of the service we have been getting from L&G. This has been acutely frustrating for us and members alike. However, a complaint would only be appropriate if members suffer some loss and there has been no loss.

Finally, I enclose a copy of the guarantee agreement as requested. A number of pages have been removed from the appendix (the AEGON quote) for data protection reasons - as they contain personal data of members. I trust this is satisfactory.

Kind regards

Jonathan

Dated 06/07/2011

Mr Asher,

Thank you, and I do agree with your comment regarding the email dated 13 June 2011, I was merely covering all aspects with one message rather than more.

Thank you also for your explanation, although I would have considered it good practice and courteous to have explained this to the members, I may be missing something, but my records don’t appear to show any notification of this.

Perhaps something to include in any future Better Practice documents?

Dated 06/07/2011

Mr Nichols,

Thank you for your comments. I will make a note to ask the Trustees of any scheme entering wind-up to include a note to that affect in one of their early announcements to the members.

Regards

Jonathan Asher

Dated 14/07/2011

Dear Mr Nichols

Further to my email below I just wanted to let you know that we have not been made aware of any issues with the data which has been transferred by L&G to AEGON.

L&G and AEGON are in the process of finalising the target dates for the project plan and we shall ask L&G to circulate the completed plan as soon as it is ready.

Kind regards

Jonathan

Dated 25/07/2011

Dear Mr Bradshaw

It is now at least three weeks since your last reported meeting with L&G where you agreed between you that a plan of outstanding actions would be drawn up and distributed. I would have expected this to be readily available by now. Please can you arrange for this to be forwarded to myself and the two addressees CC’d in this email by return.

Kind regards

Dated 27/07/2011

Dear Mr Nichols

We have been chasing L&G for this document on a regular basis. We finally received an advanced draft of the plan earlier today. We shall be asking L&G to make some further amendments and clarifications. As soon as these final amendments have been made L&G will circulate the finalised plan to you.

Kind regards

Jonathan

Dated 14/08/2011

Jonathan,

Sunday 14 August.

It is now one complete month from your last email, and we are still awaiting this plan of action! What is the problem this time?

Surely this is not too much to ask?

Whilst you have previously stated this is not affecting any members benefits it is causing a great deal of concern, such that we will now be taking legal advice to ascertain what course or courses of action we can progress.

 

Dated 22/08/2011 to Lawson West Solicitors

Hello,

I have been representing a group of former employee of a company which went into voluntary liquidation at the end of 2008. The company pension scheme is administered by a trustee company which visited the company in early 2008 to advise on what was to happen (closure of the pension scheme and purchase of annuities for all members). The timeline given for this was that all should be completed by mid to late 2009. It is now the latter half of 2011 and this still hasn’t been resolved and finalised.

The trustee company blames the pension holding company and I have been advised I cannot contact them direct, but all my communication should be with the trustees. I have been trying to press for action and completion and I keep getting “fobbed off” by the trustees who keep blaming the pension company but don’t seem able to expedite the scheme to completion.

Currently they appear to be ignoring my emails, so I have written them a letter of complaint (posted Friday 19/08/11)

Please could you advise me if this is an area that you have any experience or expertise in, and if so, whether you would be prepared to take up the case, what it would probably cost and what we could realistically expect regarding possible outcomes?

Thank you

Kind regard

Dated 22/08/2011 Reply from Tom Jellicoe @ Lawson West Solicitors

Dear Richard

Sounds like a tricky situation. Please send me more details.

From what you told me it sounds as if you are doing everything correctly to date by forcing Hammonds into setting out a schedule of when events should happen, and then applying pressure to get them to adhere to the schedule. However the sooner you can confirm that you speak for the other beneficiaries of the scheme then the more Hammonds will be forced to listen to you. If I act on your behalf alone then I will be able to create noise and to some extent shine a light into dark corners however if you enable me to act for a majority, or even a significant minority, of beneficiaries then I will be far more able to achieve the result you desire.

My first concern is how we protect you from any legal costs as it sounds as if you are somewhat exposed in all of this………potentially we could set up some form of unincorporated association of all the members who you are in contact with …….the members of the unincorporated association could then make contributions…….then this money could be used for legal costs……..from past experience I know that dealing with pension providers and professional trustees can be long winded and get quite complex so I think it is important you think about this aspect early on.

Best regards

Tom Jellicoe

Solicitor BA (Hons) Juris MA Oxon

For and behalf of Lawson West Solicitors Limited