Royal London Group Pension Plan (PO-19400)

Ombudsman’s Determination

Complaint Summary

Mr S’ complaint concerns Royal London’s decision not to exercise discretion in relation to the lump sum death benefit arising on his son’s death.

Mr S says Royal London ought to have explained to his son, Mr K, at the time he joined the GPP, that it was not a requirement for him to nominate a beneficiary for the death benefits, especially as he had no marriage plans in place. Mr S maintains that Royal London failed to fully explain to his son the implications of making his nomination, and the importance of keeping it up to date.

Summary of the Ombudsman’s Determination and reasons

The complaint should be upheld because Royal London failed to consider all potential beneficiaries within the classes defined in the applicable scheme rules. In doing so, it fettered its absolute discretion.