Halcrow Pension Scheme (PO-14236)

Ombudsman’s Determination

Outcome

I do not uphold Mr Y’s complaint and no further action is required by the Trustees, HGL or CH2M.

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

Complaint summary

Mr Y has complained that following a transfer from a previous employer’s pension scheme in 2002 there was a contractual promise to uprate his deferred pension in respect of the transfer-in at 6.5% annually. This contractual promise was confirmed in 2008 and in 2012 when he left employment. On 1 June 2016 HGL wrote to say that his pension would be transferred to a new pension scheme, the Halcrow Pension Scheme (No.2) [HPS2], and the deferred pension would be increased in line with the Consumer Price Index (CPI). Mr Y has estimated that this will reduce the pension payable by approximately £10,000 a year and he wants compensation for the removal of the contractual terms.