Local Government Pension Scheme (PO-2665)

Complaint summary

The Academy was established in 2012. A Transfer Agreement determined the assets notionally transferred to the Academy based on an assessment of the ongoing scheme funding level of active members. The Academy says that this assessment has made it unjustly liable for the funding shortfall for all ex-employees of the predecessor school, even though they were never employed by the Academy. The Academy seeks a Determination that East Riding, the local Scheme administrator, acted in breach of the Transfer Agreement and has acted ultra vires in imposing a transfer of the deficit.

Summary of the Ombudsman’s determination and reasons

The complaint should not be upheld. The decision reached by East Riding was one which a reasonable administering authority could have reached, and it was empowered to do so.