Whyte Chemicals Ltd Retirement And Death Benefits Scheme Cas 47368 · CAS-47368-K3V7

CAS-47368-K3V7

Ombudsman’s Determination Applicant Dr A

Scheme Whyte Chemicals Ltd Retirement and Death Benefits Scheme (the Scheme)

Respondent Aviva Life & Pensions UK Limited (Aviva)

Outcome

Complaint summary

Background information, including submissions from the parties and timeline of events The sequence of events is not in dispute, so I have only set out the salient points. I acknowledge there were other exchanges of information between all the parties.

On 8 July 2018, Aviva sent Dr A a retirement benefits statement which had an incorrect date of birth for him.

Dr A telephoned Aviva to correct this. During the conversation with Aviva, Dr A was told he did not have to take his pension at age 60, his NRD, and that he could defer payment until a later date.

On 3 December 2018, Aviva sent Dr A a retirement notification letter, with a retirement date in February 2019, at age 60.

On 10 December 2018, Dr A telephoned Aviva to change the age at which he intended to receive his pension to 65, which he would reach in February 2024. Dr A was told by Aviva that this could be done.

1 CAS-47368-K3V7 On 25 July 2019, Aviva sent Dr A a retirement benefits statement. This said that on his NRD in February 2019, his funds had been moved out of the with-profits fund into a deposit account.

On 1 August 2019, Dr A wrote to Aviva to complain that the funds had been moved. He said if the funds were moved in February 2019, why did it take Aviva until 25 July 2019, to tell him. He said Aviva should return his monies to the with-profits fund, backdated to February 2019.

On 6 August 2019, Aviva wrote to Dr A. Aviva said it noted Dr A had told it in December 2018, that he wished to defer the date at which he wanted to receive his pension to a date in February 2024. However, it said contractually his NRD was in February 2019. Aviva told Dr A that his benefits were held in the with-profits fund until his NRD. It said his NRD could not be amended as this was specified when his policy was set up, however, the date at which he wanted to receive his pension was amended to be in February 2024, as he requested.

2 CAS-47368-K3V7 Adjudicator’s Opinion

Dr A did not accept the Adjudicator’s Opinion and the complaint was passed to me to consider. Dr A provided some further comments in response to the Opinion. In summary, he said:-

• Aviva agreed to defer the date at which he received his pension past his NRD.

• Aviva confirmed that not making it clear to him that his funds would be moved from the with-profits fund to a deposit account when he telephoned it on 10 December 2018, was an error on its part.

• Aviva’s offer of £50 as compensation confirmed it accepted its error.

• Aviva is liable for many years of pension maturity and lost enhanced payments.

I have considered the additional points raised by Dr A. However, they do not change the outcome, I agree with the Adjudicator’s Opinion.

3 CAS-47368-K3V7 Ombudsman’s decision

I do not uphold Dr A’s complaint.

Anthony Arter

Pensions Ombudsman 22 November 2022

4  CAS-47368-K3V7 Appendix Extract from the Rules of the Whyte Chemicals Ltd Retirement and Death Benefits Scheme

“Retirement

7.(1) On the retirement of a Member or of a Deferred Pensioner

(a) at Normal Retirement Date the Cash Accumulation Retirement Assurance (Including bonus) on his life subject to a minimum of the guaranteed sum

(b) before Normal Retirement Date the surrender value of the Cash Accumulation Retirement Assurance (including bonus) on his life determined as described in Clause 6 of this Schedule

(c) after Normal Retirement Date the sum applying at Normal Retirement Date increased by such amount as the Office determines having regard to the period elapsed since Normal Retirement Date

will be available to provide the benefits in respect of him under the Scheme on retirement and on death after retirement.

(2) On the retirement of a Member or Deferred Pensioner the Office at the request of the Grantee acting in accordance with the provisions of the Scheme will deal with the sum available to provide his benefits in accordance with one or more of the following:

(a) pay a lump sum for payment to the Pensioner Member or Deferred Pensioner

(b) apply a lump sum at a rate guaranteed in accordance with the Schedule of Rates (or if more favourable at the then current annuity rate and on the then current terms of the Office) to the purchase of an annuity on his life commencing on the date of retirement corresponding to a pension payable to him under the Scheme”.

5