Interserve Pension Scheme (PO-26878)

Ombudsman’s Determination

Complaint Summary

Mr L’s complaint concerns the Trustee’s decision in exercising its discretion to change the index used for future increases on pensions in payment. Mr L argues that:-

• The Trustee did not have sufficient power under the Trust Deed and Rules dated 31 August 2017 (the Rules), to change the index from the Retail Price Index (RPI) to the Consumer Price Index (CPI).
• His retirement letter contained the words “in accordance with the rules of the scheme.” This indicates that the Rules were followed in deciding his pension. The Rules at that time did not contain any provisions for the subsequent change to CPI.

Summary of the Ombudsman’s Determination and reasons

The complaint is not upheld because recent case law and the Rules do not prevent the Trustee from changing the index.