EMI Group Pension Fund (PO-5023)

Subject

Dr Levinson has complained about the change to the method and late retirement factors used to calculate his late retirement pension and that he was not informed of the change before or after it occurred.

Dr Levinson had received quotations of his late retirement pension at specific times after his normal retirement date but following a revision to the method of how a late retirement pension is calculated, the new quotation he received in September 2013 was lower than before. He believes he has been misled and that the previous basis on which he decided to defer his pension after normal retirement date should be continued.

The Deputy Pensions Ombudsman’s determination and short reasons

The complaint should be partially upheld against the Trustee. The benefits have been calculated in accordance with the rules and there was no requirement to inform members of a change to the method for calculating the late retirement increase or factors either before or after the change occurred. However Dr Levinson was misled over how the pension would increase in late retirement and as a result he has suffered a loss of expectation for which he should be compensated. I therefore direct that the Trustee should pay Dr Levinson £500 for this loss of expectation and the distress and inconvenience he has suffered.