Mrs Y was a member of the HSC Pension Scheme (the Scheme). In June 2015, Mrs Y’s employer provided her with an estimate of her retirement benefits. A mistake was made in calculating Mrs Y’s final pensionable pay which resulted in overstated pension benefits. Mrs Y said she relied upon this information in making her decision to retire early and care for her elderly father who was terminally ill.
Following investigation, the Adjudicator provided the employer with his general observations and asked the employer to consider a resolution on the basis that the mistake was maladministration. He said it was not unreasonable to conclude that Mrs Y would not have been able to easily identify the pensionable pay figure used was incorrect or that her decision to leave her job and income of around £22,000 per annum was a significant lifestyle change. Further, Mrs Y relied on the misinformation to her detriment as had she known the correct position, she says she would have delayed her retirement and made alternative arrangements for her father’s care.
The employer agreed to resolve matters with Mrs Y and offered £5,100 (the difference between the incorrect and the correct tax-free cash lump sums) and a further £250 for the distress and upset caused
Related case studies
Mr F sought help after being told by his pension scheme that he was not entitled to the pension that he had been paid since 2006.
Mr N had appealed the decision of the Board of the PPF to reduce his FAS benefits going forward. He also believed that some elements of his pension benefits were omitted from the FAS calculations and as a result, his asset share was affected.