Firefighters’ Pension Scheme (PO-1327)

Subject

Mr Milne’s complaint is that he has suffered a loss as GAD:

• failed to review the commutation factors from 1998 to 2006 applicable to the calculation of the lump sum which he was entitled to receive under the Scheme when he retired in November 2005 (aged 50);
• delayed in introducing new factors when discussions started in 2005;
• took into account irrelevant considerations when deciding whether to implement changes to the commutation tables.  The complaint should be upheld, as GAD failed to identify its continuing responsibility to calculate appropriate factors. GAD should notify the Scheme administrator of the appropriate factor and should compensate Mr Milne for the loss of use of money and any tax liability.

The Pensions Ombudsman’s determination and short reasons

The complaint should be upheld, as GAD failed to identify its continuing responsibility to calculate appropriate factors. GAD should notify the Scheme administrator of the appropriate factor and should compensate Mr Milne for the loss of use of money and any tax liability.