Pentos Forman SSAS (CAS-12702-V0Y8)

Ombudsman’s Determination

Outcome

Mrs L’s complaint against the other Trustees is partly upheld and further action is required by the Trustees as a whole (the Trustees). To put matters right, the Trustees shall within 28 days: 

1. Draw up a policy on how to manage conflicts of interest; 

2. following this and within a further 28 days the Trustees shall reconsider the decision to award the death benefit to Mrs L, including a decision on how any death benefit is to be paid; and 

3. as the death benefit has not been paid within two years a tax charge of 55% of the amount paid will be due if this is paid as a lump sum or as an in-specie transfer. This tax shall be paid before any payment to a beneficiary. Furthermore, the Trustees shall consider how the death shall be paid either as a cash sum or in specie transfer or the purchase of an annuity.  

4. If no agreement can be reached, then the Trustees shall appoint an independent expert in accordance with rule 8.4 of the Scheme rules. 

Complaint summary

Mrs L has complained that she has been denied access to her pension for 10 years and that she has been treated unfairly by the other Trustees who do not keep her properly informed and have withheld important details regarding her pension. 

Mrs L has also made a number of other complaints regarding the administration and trusteeship of the Scheme as follows:- 

1. The Scheme Administrator and the other Trustees have received part payment of their pensions in 2015 without her consent while she has not received anything. 

2. She was expected to receive a reduced share of the fund. 

3. She is being treated unfairly; the Scheme Administrator does not keep her properly informed and has withheld important details regarding her pension. 

4. Decisions are regularly made without her knowledge. 

5. There has been conflict within the Scheme and the Scheme Administrator refuses to employ a third party professional to resolve these issues. 

6. The Scheme Administrator refuses to employ a legal adviser who is experienced in this area of law and who is impartial. 

7. The Scheme Administrator and the legal representative supposedly acting for the Scheme have repeatedly failed in their duties. Whenever she has challenged this, her daughter has been used as a scapegoat. 

8. She has been paying for three quarters of the legal fees associated with this dispute since 2008. 

9. Significant amounts of the fund have been wasted irresponsibly. 

10. Trustees’ meetings are used to intimidate her and to force her into making snap decisions without full possession of the facts. These instances are not reflected in the minutes of the meetings. 

11. She is not allowed to bring a third party to meetings, and she cannot afford to bring a legal adviser because of the financial difficulty she has been placed in by the Scheme Administrator.  

12. The exit strategy which was agreed unanimously in 2015 has not been moved forward by the Scheme Administrator, risking the proposed purchaser walking away. 

13. The actions of the Scheme Administrator and his legal adviser are causing further threats that she will not receive her pension.