Friends Life Section 32 Buyout Policy – Plan Number E7830160 (PO-18510)

Ombudsman’s Determination

Outcome

I do not uphold Mr Y’s complaint and no further action is required by Friends Life.

My reasons for reaching this decision are explained in more detail below.

Complaint summary

Mr Y complains that Friends Life has:

• improperly used that part of the Plan fund value not attributable to his Guaranteed Minimum Pension (GMP) to partially cover the shortfall in the amount required to provide the GMP on his retirement: and
• therefore, prevented him from exercising the “new pension freedoms” introduced in April 2015, enabling him to receive part of the Plan fund as tax free cash and invest the residual in an income drawdown account.