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Duty to notify scheme beneficiaries of rights
Do the operators of a scheme have a duty to notify beneficiaries of benefits and risks to those benefits, and if so, is there statute or case law to support this principle? My specific concern is with a private sector pension scheme where benefits for AVCs purchased after 1st October will lose most inflation protection. My employer says he is too busy to deal with the paperwork for securing signatures and payments by that time. The scheme operators are silent, and had not notified beneficiaries of the deadline.
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I think the information was there, but very much hidden in the small print. I am not disputing the scheme's right to cut benefits so much as questioning whether they might be under a duty to alert beneficiaries of the window of opportunity to protect themselves provided they act by a certain date. Somewhere in the back of my fuddled brain lurks a memory of case law within the last year or so which supports the proposition that there is such a duty (not confined to pension fund trustees or administrators). But perhaps I imagined it all.
I think the information was there, but very much hidden in the small print. I am not disputing the scheme's right to cut benefits so much as questioning whether they might be under a duty to alert beneficiaries of the window of opportunity to protect themselves provided they act by a certain date. Somewhere in the back of my fuddled brain lurks a memory of case law within the last year or so which supports the proposition that there is such a duty (not confined to pension fund trustees or administrators). But perhaps I imagined it all.
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