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Article: News: Scheme member considers ombudsman complaint after open market impairment.(pension fund, Pensions Ombudsman, open market option usage)
- Article from:
- Pensions Week
- Article date:
- November 18, 2002
CopyrightCOPYRIGHT 2002 FT Business. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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A member of a well known pension scheme is considering making a complaint to the Pensions Ombudsman because the scheme trustees allegedly prevented him from using the open market option to buy an impaired life annuity with his additional voluntary contribution (AVC) fund, even though he is in very poor health.
Pensions lawyers have been warning trustees that their overriding duty of care to members includes the need to use the open market option when purchasing annuities and that failure to do so could lead to complaints from disgruntled members.
Francois Barker, of law firm Hammond Suddards Edge, said: "The 1995 Pensions Act states that where trustees ...