BT Pension Scheme (PO-10277)

 Ombudsman’s Determination

Complaint Summary

Ms S has complained that the Trustee and Administrator used an incorrect normal retirement age when assessing her request for early payment of her benefits due to ill health in 2012.

Ms S has also complained that the Trustee and Administrator have incorrectly applied an earmarking order against her “Increase Your Fund” (IYF) amount and against her enhanced pension options.

Ms S has complained that she has been provided with incorrect and incomplete documentation.

Ms S has complained that the Trustee and Administrator have applied a non-standard commutation factor without explanation.

Summary of the Ombudsman’s Determination and reasons

The complaint should not be upheld against the Trustee or the Administrator because, although the use of an incorrect normal retirement age was maladministration, Ms S did not suffer any injustice as a consequence. The Trustee is required to apply the terms of the earmarking order as they are written and cannot take into account discussions held between the parties prior to the order being made. Ms S has been provided with varying and sometimes confusing information but the Trustee offered appropriate redress for this. The Trustee is not obliged to use the same commutation factor as that used by HMRC for tax purposes