Partner Rosalind Connor comments in Pensions Expert in relation to the Pensions Ombudsman siding with Pilots’ trustee on accrual rate changes
After seven members of the Pilots’ National Pension Fund issued complaints about changes made by the trustees to the scheme rules, the Pensions Ombudsman has sided with the trustee of the fund in its move to change the scheme’s benefits accrual rate.
The primary reason for these changes were made to address the scheme deficit. Anthony Arter, the Pensions Ombudsman, noted there was no evidence that the applicants were ever guaranteed to accrue benefits at a certain level until they had each retired.
Rosalind Connor commented:
“This is another example of why it is hard to overturn a trustee decision”.
“The ombudsman quite rightly makes the point that it is not for him (or in fact anyone else) to make trustees’ decisions for them.”
She further noted that while members might disagree with a trustee’s decision and may feel it is unfair, “it is the choice of the trustees what decision they make”.
“This shows again that if you want to complain about a trustee decision you need to show they did it wrong, not just that you don’t agree with it.”
Read Rosalind’s comments in Pensions Expert.
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