Royal Mail Statutory Pension Scheme (PO-11197)

Ombudsman’s Determination

Outcome

I do not uphold Mr S’ complaint and no further action is required by Royal Mail.

My reasons for reaching this decision are explained in more detail below.

Complaint summary

Mr S has deferred benefits under the Scheme, which is an unfunded public sector scheme. In 2015, new legislation (Appendix 1) came into effect which meant benefits from unfunded public sector schemes could not be transferred to defined contribution schemes after 5 April 2015 (the transfer cut-off date).

Pension benefits from defined contribution schemes can now be accessed in full at age 55. Mr S wanted to transfer away from the Scheme and take advantage of this flexibility.

Mr S argues he requested to transfer his benefits from the Scheme to Standard Life (a defined contribution scheme), but that Royal Mail did not process his request before the transfer cut-off date. As a result, he can no longer transfer his benefits to a defined contribution scheme and he will have to wait additional years before he can access his benefits.