Upheld: Service failures generally complaint against Prudential Pensions Limited

Decision detail

Summary

Mr T held a Section 226 pension with PPL and received monthly statements until August 2022 when they stopped. When he called to investigate, business A could not locate his pension, causing him significant concern. PPL's administrator later confirmed that statements were not sent from August 2022 to December 2022 due to a technical issue. Mr T was particularly distressed because he was approaching age 75 and the pension trust deed stated that if he did not transfer the fund within twelve months, it would be converted to an annuity with no payout if he died in the meantime. The ombudsman upheld the complaint and awarded £500 compensation for distress and inconvenience, finding that although Mr T faced potential financial loss, he successfully avoided any actual loss by tracing and transferring his pension before his 75th birthday.

The Ombudsman's reasoning

The ombudsman upheld the complaint because PPL failed to send monthly statements from August 2022 to December 2022 due to a technical issue. While Mr T was understandably distressed about the potential for financial loss given the pension trust deed provisions and his age approaching 75, he was able to take steps to avoid any actual financial loss by tracing and transferring his pension. Therefore, compensation for distress and inconvenience was appropriate, but not for financial loss. The £500 compensation reflects the considerable time and effort Mr T spent resolving the issue with both business A and PPL, and the worry caused by the possibility of loss.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website