Aviva Section 32 Buy out Bond (PO-15161)

Ombudsman’s Determination

Outcome

I do not uphold Mr E’s complaint and no further action is required by Aviva.

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

Complaint summary

Mr E has complained that Aviva incorrectly informed him in June 2011 that it was not possible to pay him a pension from the Plan at its maturity date on 8 June 2011 because there were insufficient funds in the Plan to cover the Guaranteed Minimum Pension (GMP) liability. He says that as a consequence of mistake:

• he was forced to continue working for a further three years after he could have retired; and
• he had to put on hold several retirement plans either because he was still working or did not have the funds to do so
• He also says that:

• he required emergency hospital treatment in December 2013 and he could have used his pension money to speed up the treatment with private healthcare;
• he was signed off sick from work for nearly a year and the pension money could have been use to help make his quality of life during this period much less stressful; and
• although Aviva have now paid him the pension instalments due to him from the Plan’s maturity date with appropriate interest for late payment, the goodwill compensation payment of £2,000 which they offered him for the considerable distress and inconvenience that he has suffered is derisory