The Central Bureau for Educational Visits and Exchanges Pension Scheme
(PO-13565)

Ombudsman’s Determination

Complaint Summary

Ms H has complained that the Trustees and BC have unjustly stepped back from their historic practice of revaluing deferred benefits by 5% per annum.

Summary of the Ombudsman’s Determination and reasons

The complaint should be partly upheld against the Trustees and BC because:

• Although BC had the power to amend the Rules, which they did having taken legal advice on the matter, there was a clear representation in a variety of documents and correspondence issued to Ms H over a number of years that revaluation would be fixed at 5% per annum. Finding out that this representation was incorrect would have caused Ms H a serious level of distress and inconvenience which should be recognised.
• However, there can be no estoppel by representation because there is no direct link to the act Ms H took in 2004 and the misinformation and she did not act at all on the misrepresentation in 2007. The act of taking out AVC’s was taken in the knowledge that she had been misinformed and so was not taken in reliance of the incorrect information.