Hays Pension Scheme AVCs (PO-11317)

Ombudsman’s Determination

Outcome

I do not uphold Mr K’s complaint and no further action is required by Hays or Prudential.

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

Complaint summary

Mr K’s complaint against Hays and Prudential is twofold.

Firstly, he is unhappy with the interest rate applied to his benefits in the Scheme’s Deposit Fund. He has highlighted that the Scheme booklet states there will be low growth to benefits in the Deposit Fund. However, he believes that there is in fact no growth, as inflation is higher than the interest rate. Furthermore, he highlights that he could achieve a better interest rate with a high street bank.

Secondly, Mr K is unhappy because £50,000 of his benefits were erroneously transferred from the Discretionary Fund to the Deposit Fund in 2015. Whilst this error was being identified and remedied, he was unable to use the funds as he wished. He therefore believes he has suffered a financial loss.

Hays is the trustee for Hays Pension Scheme, but has delegated responsibility for the administration of it to Equiniti Pensions Solutions (Equiniti). Hays Pension Scheme has several additional voluntary contributions (AVCs) arrangements; one of which is the Scheme and is offered by Prudential.

Mr K states he has largely dealt with Hays in relation to this matter. However, the Scheme is administered by Prudential. For this reason, Mr K’s complaint is against both Hays and Prudential.