Principal Civil Service Pension Scheme (the Scheme), and the Civil Service
Compensation Scheme (PO-15025)

Ombudsman’s Determination

Outcome

Mr E’s complaint against MyCSP is partly upheld, but there is a part of the complaint I do not agree with. To put matters right, for the part that is upheld, MyCSP shall pay Mr E £500 for the significant distress and inconvenience that he has suffered.

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

Complaint summary

Mr E’s complaint concerns a number of points, however there are two main issues. The first being that MyCSP has incorrectly calculated his benefits within the Scheme by using his average pensionable salary from the three years ending 31 March 2006, instead of the three years ending 31 March 2003, resulting in a lower pensionable salary.  He feels the errors regarding his salary resulted in delays in putting his pension into payment, and he believes that the pension he is now receiving is not correct, as he says his salary information is still not correct.

The second issue is that Mr E’s Voluntary Redundancy Compensation payment (compensation payment) was paid on 1 April 2016, in the 2015/2016 tax year, rather than four to six weeks after his leaving date which would fall in the 2016/2017 tax year. This caused a 40% income tax charge to be applied to the payment in excess of the first £30,000, whereas had it been paid in the 2016/2017 tax year, the taxable part of it would have only been taxed at 20%.  Mr E says this has resulted in him being liable for £5,061 additional tax than would otherwise have been the case.