Prudential Service Update
Many of our members who pay Additional Voluntary Contributions (AVCs) through Prudential may have experienced recent significant delays in the processing of contributions and payment of claims.
This a UK wide issue affecting clients across the UK that stems from the outbreak of COVID and homeworking, which further compounded by the implementation of a new IT system.
How does this affect my contributions?
Prudential have confirmed that member contributions have been received but system issues have delayed contributions being allocated to your AVC account. Therefore, when you login to your Prudential online account, you may not see an up-to-date figure.
However, these delays will not affect your money. Contributions will be backdated to the original date that they were received by Prudential and your contributions will be treated as if they have been invested the entire time. As such you will be credited with the return on investments you would have received, had your contributions been invested over the past several months. There will be no financial detriment to any member’s claim or investment as a result of these delays.
How does this affect making a claim?
Prudential have had delays in issuing claims but have provided reassurance claims will be paid and there is no problem with their ability to pay. However, the delays do mean that you may have to wait longer for your retirement or transfer claim to be completed.
Latest Update
Prudential have issued an update to the NESPF and all UK clients who are affected apologising for the impact of these delays. The full update can be read here.
While Prudential are working through a recovery plan which aims to bring the service levels back to normal, they have indicated that it may still take some time to resolve issues and clear the backlog of work that has developed.
As a consequence of the above, there is a timing impact on the production of Prudential’s annual scheme revision information and Annual Benefit Statements. The provision of the scheme annual revision information is expected to be at least 8 weeks later than usual.
Prudential have reported themselves to both the Pensions Regulator and the Financial Conduct Authority while the NESPF in conjunction with our LGPS Funds continue to push Prudential for a quick resolution.
