Upheld: administrative errors, missing contributions, failure to correctly apply contributions, inadequate explanation of unit calculations complaint against Scottish Widows Limited
Financial Ombudsman decision DRN-6359489 of 2026-05-14T00:00:00+00:00. administrative errors, missing contributions, failure to correctly apply contributions, inadequate explanation of unit calculations complaint against Scottish Widows Limited. Outcome: Upheld.
Decision detail
| Reference | DRN-6359489 |
|---|---|
| Decision date | 2026-05-14T00:00:00+00:00 |
| Firm | Scottish Widows Limited |
| Product | pension |
| Claim type | administrative errors, missing contributions, failure to correctly apply contributions, inadequate explanation of unit calculations |
| Outcome | Upheld |
| Remedy | Scottish Widows Limited must: (1) provide a clear and understandable breakdown of how missing contributions have been applied with unit price purchase dates corresponding to when units should have been bought; (2) account for the additional missing £33 as at the transfer date and provide the notional transfer figure; (3) determine the notional value of Mrs R's current policy had the £33 been invested correctly and transferred; (4) make up the loss amount by paying into Mrs R's current pension plan if possible, allowing for tax relief and charges, or pay directly to Mrs R with a 15% notional tax deduction; (5) pay £300 compensation for distress and inconvenience; (6) make payment within 28 days with 8% simple interest per annum if delayed. |
Summary
Mrs R complained that several months of pension contributions were not applied to her group personal pension with Scottish Widows Limited. SW initially indicated contributions would be backdated to the best available price date of 20 March 2023, but Mrs R believed the correct date was 20 October 2022. After transferring her pension in September 2024, Mrs R discovered an additional missing £33 contribution from September 2022 and noted a significant unexplained discrepancy between her pension statement (100,673.737 units) and SW's historical breakdown (98,228.8909 units). The ombudsman upheld the complaint, finding that SW failed to adequately explain how contributions were applied and did not properly document the calculations. The ombudsman directed SW to provide a clear breakdown of how contributions were applied, calculate the notional loss from the missing £33, pay the financial loss with a 15% tax adjustment, and pay £300 compensation for distress and inconvenience.
The Ombudsman's reasoning
The ombudsman upheld the complaint because Scottish Widows Limited failed to adequately explain and remedy the missing contributions and the discrepancy in unit values. While the principle of restoring Mrs R to the position she would have been in had no errors occurred (rather than placing her in a better position) is correct, SW did not provide sufficient clarity on how this was calculated. The change in unit value from 100,673 to 98,228 units was not adequately explained. SW's initial indication that contributions would be backdated to the best available price created a loss of expectation. The discovery of an additional missing £33 contribution after the initial correction compounded Mrs R's concerns and justified compensation at the upper end of the guidance range.
How this compares
| Group | Decisions | Uphold rate |
|---|---|---|
| Scottish Widows Limited, all decisions | 827 | 20% |
Source
Read the original decision on the Financial Ombudsman Service website