DB Cargo (UK) Limited Shared Cost Section of the Railways Pension Scheme (PO-21507)

Ombudsman’s Determination

Outcome

The complaint is partly upheld against RPMI because:

· it failed to identify Miss CS as a potential beneficiary before the lump sum death benefit was paid, which it should have done on the facts if it had followed its internal guidance in relation to death benefit cases and contacted Mr R’s immediate work colleagues; and

· as a consequence of this failure RPMI acted outside its delegated authority and no valid decision was made.

I find, however, that this failure to consider Miss CS as a potential beneficiary was remedied at Stage Two of the Internal Dispute Resolution Procedure (IDRP) when the Trustee, on the facts (and notwithstanding the legal advice received), considered the matter afresh having identified the relevant beneficiaries and collected sufficient information to make a decision and confirmed the original decision to pay the lump sum to Mr R’s sister.

Complaint summary

Miss CS is represented by Mrs P. Mrs P, on behalf of Miss CS, complains that the Trustee and RPMI failed to properly consider if Miss CS was entitled to any benefit following the death of Mr R.