Scottish Power Pension Scheme · CAS-30336-B6R3

CAS-30336-B6R3

Ombudsman’s Determination Applicant Mrs S

Scheme Scottish Power Pension Scheme (the Scheme)

Respondents The Trustee of the Scottish Power Pension Scheme (the Trustee)

Capita plc (Capita)

Outcome

Complaint summary

Background information, including submissions from the parties

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The Trustee provided its response under stage two of the IDRP. It said it had sought further legal advice in order to clarify beyond doubt whether payment of Mrs S’ trivial commutation lump sum could still be made despite the ongoing uncertainty of GMP equalisation. The Trustee said it had received clear legal advice that trivial commutation lump sum payments could not be adjusted in a manner that removed the risks. The Scheme actuary had indicated that any adjustment would be an estimate and would not remove the risk that a lump sum would be deemed as an unauthorised payment by HMRC. The Trustee also said that the decision to suspend lump sum payments was not taken until February 2019, and this was in response to legal advice received at the time. There was never any attempt to conceal this information from Mrs S or other affected members.

Adjudicator’s Opinion

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Mrs S did not accept the Adjudicator’s Opinion and the complaint was passed to me to consider. Mrs S provided her further comments which do not change the outcome. I agree with the Adjudicator’s Opinion and I will therefore only respond to the points made by Mrs S for completeness.

Mrs S said that she appreciated that the Trustees were able to withdraw the option of trivial commutation, but as she had signed the paperwork, the Trustee should have honoured her option of a lump sum through trivial commutation.

Ombudsman’s decision

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Anthony Arter

Pensions Ombudsman 29 January 2020

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