Sun Life Flexible Pension Plan · CAS-30346-L9M7

CAS-30346-L9M7

Ombudsman’s Determination Applicant Mr N

Scheme Sun Life Flexible Pension Plan (the Plan)

Respondents Aviva

Outcome

Background information, including submissions from the parties

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2 CAS-30346-L9M7 Adjudicator’s Opinion

Taking the above provision into account the Adjudicator concluded that Aviva had the power to decline any extension to the life cover if any one of the conditions applied. Aviva had explained that from 6 April 2007, any additional premiums to the Life Plan would not attract tax relief and, in effect, would not be approved by the Inland Revenue. Based on this Aviva, took a commercial decision not to allow any extension of life cover beyond the originally selected retirement date. The Adjudicator was of the view that it was reasonable for Aviva to take such a commercial decision and it was within the terms and conditions of the policy. Therefore, Mr N’s complaint regarding the continuation of life cover should not be upheld.

Mr N has also complained about the level of compensation that he has been offered in respect of the incorrect information that Aviva provided. The Adjudicator noted that the offer of £100 is below the minimum award we would normally make in these circumstances. He therefore considered that Aviva should, within 21 days of the finalisation of this complaint, pay Mr N £500 for the significant distress and inconvenience he has experienced.

3 CAS-30346-L9M7 Aviva accepted the Adjudicator’s Opinion, but Mr N did not, and the complaint was passed to me to consider. Mr N has provided his further comments which do not change the outcome. I agree with the Adjudicator’s Opinion and I will therefore only respond to the points made by Mr N for completeness.

Mr N says that he cannot accept and does not believe it is right that after being informed by Friends Life in writing, before being taken over by Aviva, and then being told by three separate individual policy advisers at Aviva that the life cover could continue, that Aviva can then retract what was agreed on his retirement date. For Aviva to say that it will not pay out on the life cover benefit if he should die before age 65 is just not right.

Ombudsman’s decision

4 CAS-30346-L9M7 Directions Within 21 days of the date of this Determination, Aviva shall pay Mr N £500 for the significant distress and inconvenience he has experienced.

Anthony Arter

Pensions Ombudsman 24 February 2020

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