Scheme:
Thales UK Pension Scheme (TOPS section)
Complainant:
Mr R
Respondent:
1. Thales Pension Trustees Limited 2. Thales UK Limited
Topic:
CPI: switch to
Ref:
PO-16892
Date:
Thu 12 Dec 2019
Outcome:
Upheld

Ombudsman’s Determination

Complaint summary

Mr R’s complaint concerns the Trustee’s decision to change the index used to calculate annual increases on his Scheme benefits.

On 29 September 2016, the Trustee announced that it intended to increase Scheme benefits annually going forward based on the consumer prices index (CPI), rather than the more favourable retail prices index (RPI). The consequence of the change of index is that Mr R’s annual pension increase is likely to be lower.

Summary of the Ombudsman’s decision and reasons

The complaint is upheld against the Trustee and Thales UK, and to put matters right the Trustee shall increase Mr R’s pension in line with RPI.

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

View determination