Aviva Buy-Out Policy (the Policy) for the Copenhagen Re (UK) Pension and Life Assurance Scheme (the Scheme) (CAS-14193-K6Y0 and CAS-47697-N3Q4)

Ombudsman’s Determination

Outcome

Mr S’ complaints against Aviva are partly upheld.  

To put matters right, Aviva shall: 

• provide Mr S with further details of how the Pension, the Additional Policy Value, the Additional Pension and the Additional Tax Free Cash available to him from the Policy were calculated; 

• pay interest on the back payments of the Additional Pension and provide details of how this interest payment is calculated; and 

• award Mr S £3,000 (inclusive of the overall goodwill award of £1,600 already paid) in recognition of the severe distress and inconvenience which he has experienced dealing with this matter.  

Complaint summary

Mr S’ first complaint (CAS-14193-K6Y0) is that Aviva: (a) incorrectly reduced the guaranteed growth rate on the single contributions to the Policy from 3% to 1% per annum; and (b) did not apply the Guaranteed Annuity Rate (GAR) available from the Policy to 50% of the Policy Value.  

His second complaint (CAS-47697-N3Q4) is that Aviva: (a) used the wrong surrender rate when calculating the pension and tax free cash available to him from the Policy in 2019; and (b) subsequently failed to explain clearly in 2021 how the additional retirement benefits payable to him were calculated.