Nhs Pension Scheme · CAS-41364-B2L7

CAS-41364-B2L7

Ombudsman’s Determination Applicant Mrs Y

Scheme NHS Pension Scheme (the Scheme)

Respondent NHS Business Service Authority (NHS BSA)

Outcome

Complaint summary

Background information, including submissions from the parties In March 2012, Mrs Y requested from NHS BSA a statement of the benefits she could get from the Scheme at retirement. She requested this information to assist her in her Employment Tribunal (ET) claim against her previous employer.

On 16 March 2012, NHS BSA sent Mrs Y an estimate of the retirement benefits she could get from the Scheme (the 2012 Statement). The 2012 Statement listed Mrs Y’s total pensionable pay as £43,971.01. The 2012 Statement informed Mrs Y that at retirement she could get:

• an annual pension of £10,745.79; and

• a tax free lump sum of £32,237.37.

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“Whilst we have made every effort to ensure that this quotation is accurate, you should be aware that this statement is an estimated quotation only. The figures contained in it are based upon information that we hold as of the date that this quotation was issued. Exact figures cannot be given until an application for benefits has been made in accordance with the Scheme Rules” (original emphasis).

This statement listed Mrs Y’s pay as £43,244.45 and included the following caveat:

“Please be aware that this is an estimate and shown for guidance only. You should check the amount of Pensionable Pay quoted is consistent with your current pay or what would be the full-time equivalent pay if you currently work 2 CAS-41364-B2L7 part-time. If the figure is significantly different you should contact us. Figures are based on known information. Exact retirement figures cannot be given until final pay and service details are known.”

On 24 November 2016, NHS BSA sent Mrs Y details of the benefits payable, following her application for her retirement benefits (the 2016 Statement). It informed Mrs Y that she would be paid an annual pension of £6,721.37 from 28 September 2016, and that she would receive a net lump sum of £20,164.11. It also informed her that her benefits were calculated using a salary of £25,730.10.

On 28 December 2016, Mrs Y complained to NHS BSA through the Scheme’s Internal Dispute Resolution Procedure (IDRP). In summary she said:-

• She had recently reached her normal retirement age and was looking forward to receiving her pension from the Scheme, knowing that she would be financially secure for the rest of her life. When she received the 2016 Statement, she felt very upset and disappointed because it showed figures of approximately half of what she was previously informed she would get.

• She expected a much larger pension based on previous estimates she had received. She appreciated that those figures were not guaranteed but she had made major decisions based on them.

• To make matters worse, when she received her pension, it was less than quoted in the 2016 Statement. This left her with no confidence in NHS BSA’s systems.

• She queried: (i) how the pension estimates had been calculated on the erroneous statements; (ii) why the lump sum was short by £1,146.75 when it was received; and (iii) if her monthly pension had been calculated correctly.

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(ii) her total service and a pensionable pay figure of £25,730.10.

• The stage one IDRP decision did not answer her questions.

• She was not a pensions expert and relied on NHS BSA to calculate the estimates correctly.

• She queried why the estimates had not been calculated manually if they should have been.

• She requested details of the revised information NHS BSA had received to calculate her benefits that were put into payment.

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Mrs Y’s position

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Adjudicator’s Opinion

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1 https://www.pensions-ombudsman.org.uk/sites/default/files/publication/files/Updated-

Non-financial-injustice-September-2018-2_0.pdf

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Ombudsman’s decision

11 CAS-41364-B2L7 I uphold Mrs Y’s complaint in part.

Directions

Anthony Arter CBE

Deputy Pensions Ombudsman 10 March 2023

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