Honeywell UK Pension Scheme (PO-3290)

Subject

Mr Ramsey complains that the Company, the Trustee and the Administrator failed to inform him of the personal tax liability that arose as a result of him taking his pension benefits in the manner that he elected to take them. Mr Ramsey argues that had he been aware of the potential tax liability when he elected to take his pension benefits he would have elected to take them earlier (i.e. to avoid the tax liability). To put matters right Mr Ramsey wants the Scheme to pay his personal tax liability in full.

The Deputy Pensions Ombudsman’s determination and short reasons

The complaint should not be upheld against the Company, the Trustee or the Administrator because:

• none of the Company, the Trustee or the Administrator had any legal obligation to inform Mr Ramsey that he may be subject to an annual allowance tax charge if he elected to take his pension benefits in the manner he elected to take them; and
• even if the amount of the personal tax charge was made known to Mr Ramsey prior to making his election he would still, on the balance of probabilities, have taken his pension benefits in the manner he elected to take them.