Upheld: pension transfer delays, incorrect transfer value information, poor service in pension transfer process complaint against Aviva Life & Pensions UK Limited
Financial Ombudsman decision DRN-6124914 of 2026-05-22T00:00:00+00:00. pension transfer delays, incorrect transfer value information, poor service in pension transfer process complaint against Aviva Life & Pensions UK Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6124914 |
|---|---|
| Decision date | 2026-05-22T00:00:00+00:00 |
| Firm | Aviva Life & Pensions UK Limited |
| Product | pension |
| Claim type | pension transfer delays, incorrect transfer value information, poor service in pension transfer process |
| Outcome | Upheld |
| Remedy | Aviva must: (1) Carry out a loss assessment comparing the current value of Mr L's pension with Provider D against the hypothetical value had transfer occurred on 20 May 2025 without delays, accounting for actual contributions/withdrawals; (2) Pay any loss identified, preferably into the pension plan with allowance for charges and tax relief, or if not possible, as a lump sum to Mr L with 15% notional tax reduction; (3) Pay 8% simple interest on the TFC amount of £49,987.50 from 20 May 2025 to 4 June 2025; (4) Pay total compensation of £400 for distress and inconvenience (cancel/reissue cheques as necessary to ensure total of £400 is received); (5) Provide calculation details to Mr L in clear and simple format. |
Summary
Mr L complained that Aviva provided incorrect information, poor service, and caused delays during his pension transfer from Aviva to a SIPP with Provider D in 2025. The key issues were: (1) whether Aviva wrongly calculated his tax-free cash entitlement and caused unnecessary delays in the pre-transfer period; (2) whether the transfer value should have been higher than the amount transferred; and (3) whether Aviva's complaint handling was deficient. The ombudsman found that while the pre-transfer period (March-May 2025) involved complex calculations that were not unreasonably delayed, Aviva caused unnecessary delays in the actual transfer process (6 May to 4 June 2025), exceeding the 10 working day TRIG standard by 15 days. The ombudsman upheld the complaint regarding transfer delays and loss of expectation but rejected the transfer value shortfall claim, finding Aviva's use of the 75th birthday value was contractually justified. Aviva was ordered to compensate Mr L for investment losses from the delay, pay interest on his tax-free cash, and provide £400 compensation for distress and inconvenience.
The Ombudsman's reasoning
The ombudsman found that while Aviva was entitled to use the pension value as of 2 May 2025 (the working day before Mr L's 75th birthday) as the transfer value under its contract terms, it caused unnecessary delays in the actual transfer process. The transfer instruction was received on 6 May 2025 and should have been completed by 20 May 2025 under TRIG guidance (10 working days), but Aviva did not transfer funds until 4 June 2025. Additionally, Aviva provided incorrect information about the transfer value and allowed Mr L's online account to show misleading pension values after age 75, creating a loss of expectation. The ombudsman rejected the complaint handling jurisdiction issue and focused on the regulated activities of pension transfer handling. While the pre-transfer period (March-May 2025) involved complex calculations that were not unreasonably delayed, the post-instruction period (6 May-4 June 2025) involved an unjustified 15-day delay beyond industry standards.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Aviva Life & Pensions UK Limited, all decisions | 2,444 | 23% |
Source
Read the original decision on the Financial Ombudsman Service website