Local Government Pension Scheme (CAS-27442-J5K2)

Ombudsman’s Determination

Outcome 

Mr R’s complaint against the Council is partly upheld. To put matters right, the Council shall pay Mr R £500 in recognition of the significant non-financial injustice which he has suffered dealing with this matter.

Complaint summary 

Mr R has complained that the Council failed to augment in a timely manner the early retirement pension available to him from the LGPS in the way stipulated by the provisions of the Settlement Agreement. 

He contends that the Council should have used the part of his severance award which could not be paid tax free of £24,967 to either buy additional pensionable service for him in the LGPS or to partially cover the value of his unpaid contributions required to purchase the remaining 4 years 40 days of his added years pension contract. 

He is unhappy that the Council decided:

• to pay £24,967 directly into the Fund in order to secure an additional pension of £1,279.98 per annum for him from his early retirement date of 1 October 2016; and 

• the strain cost of providing this extra pension on an unreduced basis from the LGPS should be covered by his severance award. 

In his view, the Council should have been responsible for paying the associated strain cost to purchase an unreduced pension using the entire £24,967 for him. 

He is also dissatisfied with how the Council subsequently dealt with his complaint under the LGPS Internal Dispute Resolution Procedure.