Local Government Pension Scheme (PO-6015)

Complaint summary

Mrs Chapman complains that Birmingham City University (BCU) and West Midlands Pension Fund (WMPF) have wrongly declined her application for early payment of her deferred pension in the Local Government Pension Scheme (LGPS). She contends that:

• BCU and WMPF failed to provide her with satisfactory reasons for their decision;
• BCU failed to exercise discretion correctly in relation to their policy on early payment of deferred pensions; and
• she would not have taken voluntary redundancy at age 54 if BCU had told her that by remaining in their employment until age 55, she would have been entitled to immediate payment of her unreduced pension if she was subsequently made redundant (before age 60).
• She has also requested that I determine whether or not the termination of her employment entitled her to the immediate payment of her pension on the grounds of redundancy or business efficiency.

Summary of the Ombudsman’s Determination and reasons

The complaint should not be upheld against BCU and WMPF because I consider that BCU had asked Mrs Chapman the right questions about her financial status and considered all the relevant factors before reaching the decision that her request for early retirement should be declined.