Pearl Retirement Annuity Contract (PO-9412)

Ombudsman’s Determination

Outcome

1. I do not uphold Mr N’s complaint and no further action is required by Phoenix.
2. My reasons for reaching this decision are explained in more detail below.

Complaint summary

1. Mr N’s complaint against Phoenix is:

• They have failed to comment on the documented and verbal assurances Pearl gave him during 2001/2 when he contacted them regarding their suspension of annual bonus payments for the Plan.
• The High Court ruling on Equitable Life is that the insurer could not reduce terminal bonuses to mitigate the costs of guarantees under with-profits policies made at the commencement of the agreement.
• The value of the Plan has remained static for the last 15 years. Bonuses were added to the Plan until 31 December 2001, when the value of the fund was £21,438. This was the same total used in April 2015 to convert the fund to an annuity.