Armed Forces Pension Scheme 1975 (PO-25248)

Ombudsman’s Determination

Outcome

Mr S’ complaint against Veterans UK is partly upheld, but there is a part of the complaint I do not agree with. To put matters right, for the part that is upheld, Veterans UK shall pay Mr S £500 for the significant distress and inconvenience he has suffered.

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

Complaint summary

Mr S is complaining that he has been denied the opportunity to take advantage of the “Life Commutation Scheme” and exchange (commute) some of his annual pension for a tax free lump sum. He also states he did not receive any literature informing him that the Scheme Rules had changed and removed this option.

Mr S is also unhappy that the Scheme’s website contained incorrect and misleading information which he says he relied upon when making certain financial decisions.

Mr S believes he has been financially disadvantaged by not being able to exchange some or all of his annual pension for a tax-free commutation lump sum of £79,368.