Keepmoat Pension Plan (PO-20307)

Ombudsman’s Determination

Complaint Summary

Mr N’s complaint is in several parts:-

• The Company and Trustees have failed to pay his benefits in line with his benefit statements;
• They have unilaterally changed the rules of the Plan after his retirement date by removing his entitlement to revaluation in deferment; and
• This has caused him a financial loss, as well as distress and inconvenience, for which he seeks compensation.

Summary of the Ombudsman’s Determination and reasons

The complaint should be partly upheld against the Trustees. In summary, this is because the special terms/underpin (the Special Terms) do not form part of the Plan benefits; they are a promise by the Company to pay a certain level of benefits to members outside of the Plan and there is no evidence that they are now being misinterpreted. There is insufficient evidence Mr N has changed his position in reliance on an incorrect benefit statement sent in July 2016 (or other statements). However, the Trustees, who assumed responsibility for providing accurate information, should pay Mr N £2,000 in respect of severe non-financial injustice caused by the incorrect statements which were sent to him.