Not upheld: Service failures generally complaint against Rothesay Life Plc

Decision detail

Summary

Mr S complained that Rothesay Life Plc unfairly removed his option to transfer his defined benefit pension benefits after he reached age 65 in August 2021. Rothesay's policy allowed transfers for policyholders under 65 who were not receiving benefits, but Mr S did not pursue a transfer before reaching that age. Although Rothesay's communications from 2023 onwards were somewhat unclear and it acknowledged sending an April 2023 transfer valuation in error, the ombudsman found this did not cause Mr S to lose a right he otherwise would have had, as his transfer option had already expired under Rothesay's policy. The ombudsman concluded that Rothesay's apology was sufficient remedy and did not uphold the complaint.

The Ombudsman's reasoning

The ombudsman found that Rothesay was entitled to set a discretionary policy allowing transfers only until age 65, which was more generous than the statutory entitlement that expired in August 2020. While Rothesay's communications from 2023 onwards were unclear and may have given Mr S false hope, this did not cause him to lose a right he otherwise would have had, because his transfer option had already expired when he reached age 65 in August 2021. The ombudsman noted that Mr S took no meaningful steps towards transferring before age 65 (he did not obtain financial advice or submit a transfer request by that date), so the unclear later communications did not result in financial loss. Rothesay's apology for sending the April 2023 transfer valuation in error was deemed sufficient remedy.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website