Ici Pension Fund · CAS-12873-V7D4

CAS-12873-V7D4

Ombudsman’s Determination Applicant Mr H

Scheme ICI Pension Fund (the Fund)

Respondents The Trustee of the ICI Pension Fund (the Trustee) Willis Towers Watson (WTW)

Complaint Summary

Summary of the Ombudsman’s Determination and reasons

1 PO-24337 Detailed Determination Material facts

On 3 January 2017, WTW, the Fund’s administrator at the time, sent Mr H an early retirement quotation (the Quotation) of his deferred benefits based on his proposed retirement date in October 2017. He was given the following options:

“You should note if the value of your final benefits is within 10% of the value shown on the enclosed quotation we will go ahead and set up the payment of your benefit without issuing a new quotation” (the Caveat).

“I know you will calculate the benefits again before commencing payment in October, and I don’t wish to find a nasty surprise waiting!”

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“In the original documentation issued it stated if the value of your benefits are within 10% of the value shown on the statement, we will go ahead and set up the payment of your benefits without issuing a new quotation. As the recalculation value was within 10% we have proceeded with your retirement set up.”

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2 This date is the reference calculation date used by Mr H in his most recent substantive loss calculation submitted. 12 PO-24337

3 https://www.fca.org.uk/publication/finalised-guidance/fg17-9.pdf 4 Mr H provided a spreadsheet detailing the value of his Royal London PPP. 5 Mr H provided details of the three annuities. 13 PO-24337

The Trustee said in summary:-

6 Mr H provided details of the calculations he completed to establish the Current Loss. He revised the figure of £23,917 to £49,631.80 as a result of maximising the available funds by optimising the tax treatment of drawing his benefits, with a larger remaining balance (after purchasing annuities) reflecting his claimed loss. 14 PO-24337

7 Mr H used a growth rate of 7.52% in his calculations. 15 PO-24337

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8 Mr H had taken account of the potential IFA costs in his loss calculation included with his submissions to TPO. 19 PO-24337

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9 Royal London Governed Portfolio 4. 10 Mr H submitted calculations using the date of 21 January 2022, which was when he undertook the calculation shortly before submitting it to TPO. 21 PO-24337

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Anthony Arter CBE

Deputy Pensions Ombudsman 23 November 2023

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