Bic UK Pension Scheme (CAS-52655-W0Z3)

Ombudsman’s Determination

Outcome

1. The complaint is partly upheld against the Trustees, I am satisfied that:- 
   1. Mr M has sustained severe non-financial injustice (distress and inconvenience) as a consequence of the maladministration by the Trustees in making the overpayments. 
   2. The Trustees were, however, correct to reduce the pension to the correct level provided for in the rules governing the Scheme on discovery of the overpayments. 
   3. The Trustees may, subject to first obtaining the approval of the County Court for the purposes of section 91(6) of the Pensions Act 1995 (the 1995 Act) commence recovery of the overpayments of Mr M’s pension at the rate specified in the Proposed Recoupment Plan. 

Complaint summary

1. The main 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 (Burgess (CA)).^[1]

2. Mr M considers that:-

   1. His pension should not have been corrected to the level provided under the Scheme rules going forward.

   2. The past overpayments should not be recovered. They have arisen as a consequence of the failure, on the part of the then Trustees, to properly implement the benefit improvement that was introduced in 1992. Furthermore, at the time of his retirement in 1999, he reasonably relied on recommendations, which he alleges were made on behalf of the Trustees (the Recommendations) concerning enhanced retirement options on redundancy.

3. The Trustees are seeking to recoup the sum of £12,620, at a monthly rate of £48.54[2] over a period of 21 years and eight months (the Proposed Recoupment Plan).