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United Kingdom

Pensions Ombudsman upholds trustee’s DC death benefit discretion; DB spouse’s pension mandatory; high bar to challenge; £500 for 12‑month delay (Mr R, CAS‑87507‑L4G3)

Published on: 13 January 2025

Published by a LexisNexis Pensions expert
Legal News
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Article summary

Summary

The Pensions Ombudsman has partially upheld a complaint concerning the distribution of discretionary death benefits. In the absence of a letter of wishes, the Scheme trustee took into account all pertinent matters and carried out suitable enquiries. The trustee’s outcome was not considered perverse or unreasonable. Nevertheless, the complainant was awarded £500 for the notable distress and inconvenience arising from a 12-month delay in the commencement of his spouse’s pension. The Ombudsman’s decision underlines that there is a demanding threshold for disturbing the exercise of a trustee’s discretion...

What were the facts?

Mr R’s late wife (Mrs R) belonged to both the defined benefit (DB) and defined contribution (DC) sections of the Credit Suisse Group (UK) Pension Fund (the Scheme). Shortly before she died, Mrs R received an enhanced transfer quotation exceeding £500,000 in respect of the defined benefits she had accrued under the Scheme...

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