Abbey Life Directors and Executive Retirement Plan (PO-2470)

Subject

Dr Langdell complains that Abbey Life repeatedly verbally assured him that his tax free cash was in the region of £13,845.6. However, he was subsequently paid around £7,800. He also says that they failed to follow his instructions regarding the set up of his pension benefits, given that he had stated that if he was to receive less than £13,845.61 of tax free cash, he did not wish to receive his pension benefits at that time.

The Deputy Pensions Ombudsman’s determination and short reasons

The complaint should be upheld against Abbey Life because they:

• gave Dr Langdell incorrect information about his Tax Free Cash Allowance;
• failed to adequately explain that Dr Langdell’s Tax Free Cash Allowance had been reduced because a loan to his employer had been repaid from his policy;
• set up his pension benefit when they knew or should have known that Dr Langell had instructed them not to set up his benefits if his tax free cash was less than £13,845.61; and
• failed to adequately respond to Dr Langdell’s letters of complaint;

As a result, they should pay Dr Langdell £500 for distress and inconvenience caused in pursuing this complaint.