NHS Pension Scheme (PO-4692)

Subject

Mr Stewart says that Mrs McLeod’s estate (the Estate) is entitled to receive the commuted ill-health lump sum (of £105,016.78) paid to it in July 2012. Accordingly, Mr Stewart says that my office should find that the Estate is entitled to keep the lump sum and should not return it (as is currently being requested by NHS Pensions). Mr Stewart also says that if it is found that Mrs McLeod was not entitled to receive the commuted ill-health lump sum, NHS Pensions acted negligently in failing to tell Mrs McLeod that her membership of the Scheme would be extended to 8 July 2012 as a consequence of her being paid unused annual leave in lieu.

The Deputy Pensions Ombudsman’s determination and short reasons

The complaint is not upheld against NHS Pensions because the relevant regulations provide that Mrs McLeod was not entitled to receive the commuted ill-health lump sum. It follows that the Estate cannot receive the commuted ill-health lump sum. (The Estate is instead entitled to a death in service lump sum from the Scheme.). Further, NHS Pensions did not act negligently in their dealings with Mrs McLeod as they did not have a duty to advise Mrs McLeod about her rights under the Scheme. Finally, the Estate is not entitled to recover their legal fees from NHS Pensions, or to any compensation for distress and inconvenience.