Bic UK Pension Scheme (CAS-52136-P6D3 & CAS-52149-F8K1)

Ombudsman’s Determination

Outcome

The complaint is partly upheld against the Trustees, I am satisfied that:- 

1. It is not equitable for the Trustees to recoup the overpayments that built up before 1 April 2020. Furthermore, Mr and Mrs D have a defence of laches to the recovery of the overpayments that built up to 31 March 2020. It follows that the Trustees shall refrain from taking any recovery action in respect of the overpayments of Mr D’s pension that built up between 1 March 2000 and 31 March 2020, which amounts to £30,870.64. The Trustees shall also refrain from taking any recovery action in respect of the overpayments of Mrs D’s pension that built up between 1 October 1999 and 31 March 2020, which amounts to £16,095.10.

2. Mr and Mrs D have sustained non-financial injustice (distress and inconvenience) as a consequence of the maladministration by the Trustees in making the overpayments. Mr D is entitled to a distress and inconvenience award of £1,000; Mrs D is entitled to an equivalent award. 

Complaint summary

1. The complaint concerns the Trustees’ decision to recover overpayments through recoupment from future pension payments following the Court of Appeal’s decision in BIC v Burgess [2019] 051 PBLR 026.

2. The Trustees are seeking to recoup the sum of £31,413 from Mr D’s pension, at a monthly rate of £121.76, over the period of 21 years and six months that the overpayment accrued. 

3. The Trustees are also seeking to recoup £16,408 from Mrs D’s pension, at a monthly rate of £62.62, over the period of 21 years and 10 months that the overpayment accrued.