Case law round-up — Pensions Matter, March 2014... an overview of key pension cases and their practical implications
In McCoy (P-2319), the Pensions Ombudsman (PO) held that it was reasonable for the trustees of a self-invested personal pension (SIPP) to require the beneficiary of a lump-sum death benefit to complete a form of discharge prior to paying out the discretionary benefit.
In reaching its decision, the PO referred to authorities that indicated, upon the trustees making final distribution of the lump-sum death benefit, a trustee will naturally want to ensure for itself the maximum security against possible future litigation.
This determination gives comfort to trustees, in that it is entirely reasonable to trustees to be discharged of their liabilities prior to paying out lump-sum death benefits…
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