NU faces £11m compensation bill

After their introduction in 2001, the Government created a charge cap of 1% for all stakeholder pensions, but due to a charging error, Norwich Union went over this limit. The firm will send each of its 34,000 stakeholder pension customer customers an average of £300. Norwich Union says it informed the FSA as soon as it noticed the error and began compensation procedures. Those customers who have already retired will receive a cheque for the amount they have been overcharged, while others will have their compensation added to their pension fund. The error was discovered during a review o...