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United Kingdom

Deputy Pensions Ombudsman: Maladministration where trustees failed to exercise death benefit discretion despite trust; ReAssure to reconsider and pay £1,000 (Mrs E, CAS-31211-Y0H1)

Published on: 01 August 2024

Published by a LexisNexis Pensions expert
Legal News
Table of contents
  • Original news
  • Summary
  • What were the facts?
  • What was the Pensions Ombudsman’s decision?
  • What is the impact of this determination?
Article summary

Original news Mrs E (CAS-31211-Y0H1)—20 May 2024 Summary

The Deputy Pensions Ombudsman upheld a complaint concerning a death benefit payment. The scheme had paid the benefit to the member's former spouse instead of his widow, maintaining they were compelled to do so because the benefits had been placed in a trust for her at the time. Yet the rules had been revised and, in effect, granted the trustees complete discretion over death benefit payments even where an individual trust existed. By not exercising that discretion in this case, the trustees committed maladministration and were instructed to revisit the decision and award compensation for significant distress and inconvenience. This determination from the Deputy Pensions Ombudsman serves as a clear reminder that when trustees possess a discretion, they must actively apply it.

What were the facts?...

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