Case Studies

A platform for parties in dispute to listen and understand each other

Retirement Savings Plan

Ms. Yeung had been a customer of Bank A for many years.  When she was 50 years old, she decided to make plans for retirement. She approached Bank A and subscribed to a retirement savings plan with a ten-year contribution period.  She expected to receive a guaranteed retirement cash of HK$30,000 each year for ten years after she turned 60 years old, a lump sum payment of HK$500,000 plus dividend at the age of 70 and a free life term insurance of HK$250,000 up to the age of 100.

On the maturity of the retirement savings plan, Ms. Yeung found out that she would not be entitled to the lump sum payment of HK$500,000 if she received the guaranteed retirement cash each year for ten years. She was still entitled to the free life term insurance. Ms. Yeung was very upset and believed that she was misled by the staff of Bank A at the time she subscribed to the retirement savings plan.

Ms. Yeung complained to Bank A. It was explained to her that the lump sum payment would only be paid to her at the age of 70 if no retirement cash was withdrawn from the retirement savings plan.  Ms. Yeung was not satisfied with Bank A’s explanation and she submitted an application to the FDRC in order to resolve the matter.

The mediator helped both parties identify the issues and understand each other’s concerns and interests.  Ms. Yeung and Bank A were able to find common solutions and Ms. Yeung was given a thorough explanation about the structure and the content of her retirement savings plan.  The two parties settled the dispute with help from the mediator and they appreciated the mediator’s efforts in bridging the gap between them. Both parties indicated that they would recommend the FDRC mediation services to others in need.

 

(The case studies are based on actual FDRC cases. Various information including names of claimants, financial institutions and their staff, actual claim and settlement amounts have been altered to protect confidentiality of parties.)

 

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