BT Pension Scheme (PO-6385)

Ombudsman’s Determination

Outcome

I do not uphold Ms O’s complaint and no further action is required by the Trustee or Accenture.

My reasons for reaching this decision are explained in more detail below.

Complaint summary

Ms O has complained that her then IFA (the IFA), was given incorrect information by Accenture, that indicated that she could take a tax free lump sum (TFLS) from her pension credit (PC) rights.

Ms O estimates her financial loss to be significant as she says she made an offer on a house based on the wrong information. When she became aware of the correct position, she took a lump sum from her State Pension, to complete the house purchase, and incurred additional income tax. She considers reimbursement of the one-off tax charge of £9,116, as well as the ongoing tax on her monthly State Pension payments, as reasonable compensation for the financial loss.

The Trustee and Accenture do not accept that a mistake has been made or that they are required to tell an ex-spouse whether they can take a TFLS from PC rights.