Partially upheld: pension annuity calculation accuracy and poor customer service complaint against Phoenix Life CA Limited trading as Phoenix Life

Decision detail

Summary

Mr P complained that Phoenix underpaid his pension annuity by £919.29 per year based on a DWP letter, and provided poor service when he queried this. Phoenix maintained its calculations were correct based on the original plan schedule showing £712.40 per annum with specified revaluation rates. The ombudsman found Phoenix's calculations appeared sound and that it was reasonable for Phoenix to ask Mr P to obtain detailed information from the DWP to clarify the discrepancy. However, the ombudsman upheld the poor service complaint, finding Phoenix took nearly a month to respond meaningfully, unnecessarily passed Mr P between departments, mis-spelled his name, and failed to update his address. The ombudsman ordered Phoenix to pay £200 compensation for this poor service.

The Ombudsman's reasoning

The ombudsman found that Phoenix's annuity calculations appeared correct based on the plan schedule Mr P provided, which showed £712.40 per annum with specified revaluation rates. The DWP's figures could not be verified without explanation from the DWP itself, and Phoenix's suggestion that Mr P obtain detailed information from the DWP was reasonable. However, Phoenix's poor service in delaying response, passing Mr P between departments, mis-spelling his name, and failing to update his address was acknowledged and warranted compensation. The ombudsman could not investigate the DWP's role as it falls outside FOS jurisdiction.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website