Airdrie Savings Bank Pension Scheme · CAS-42076-Y7C6

CAS-42076-Y7C6

Ombudsman’s Determination Applicant Mr N

Scheme Airdrie Savings Bank Pension Scheme (the Scheme)

Respondents Phoenix Life Ltd (Phoenix) Dalriada Trustees Limited (the Trustee)

Outcome

Complaint summary

Background information, including submissions from the parties Mr N became an active member of the Scheme from 21 April 1980, and his normal retirement age (NRA) was 65. He was made redundant on 14 March 2018 and became a deferred member of the Scheme from that date. Airdrie Savings Bank (the Bank) was Mr N’s employer and was the only employer in the Scheme.

On 26 March 2018, the Scheme’s administrator at the time sent Mr N a preserved benefit statement (the Statement) informing him of the estimated benefits he could receive at his NRA. Under the heading: Early Retirement (original emphasis), in the Statement notes it said: 1 CAS-42076-Y7C6 “You may currently apply to receive your benefits at any age on or after your 55th birthday.

If you wish to receive the benefits before your [NRA]/60th birthday, Trustee agreement may be required before any benefits can be paid. The pension will be reduced for early payment…”

1 A summary of the Announcement is in Appendix 1 2 This timeline is detailed in Appendix 2 3 Relevant extracts of the Scheme booklet are in Appendix 3

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4 Relevant sections of the 2014 Deed are in Appendix 3

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Adjudicator’s Opinion

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5 This guidance is published on The Pensions Ombudsman website.

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Ombudsman’s decision

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I uphold this complaint in part.

6 An extract of the relevant Rule is in Appendix 4

17 CAS-42076-Y7C6 Directions

Anthony Arter

Pensions Ombudsman 29 September 2022

18 CAS-42076-Y7C6 Appendix 1 1. Summary of the Announcement dated 10 October 2018

19 CAS-42076-Y7C6 Appendix 2

8 August 2018 Mr N wrote to Phoenix requesting a CETV quotation of his benefits. The letter was sent by first class post.

7 September 2018 Mr N sent a copy of the above letter to Phoenix by signed for post.

24 September 2018 Mr N sent an enquiry to Phoenix using its online enquiry system.

28 September 2018 Phoenix replied to Mr N, enclosing a form for further information. Phoenix did not provide a return address.

14 October 2018 Mr N received the Announcement.

15 October 2018 Mr N emailed the Trustee for assistance with his CETV quotation request.

17 October 2018 Mr N received an email from the Trustee, attaching the CETV quotation. He received the paper copy of this quotation in the post the following day. The CETV quotation was dated 10 September 2018.

5 December 2018 Mr N emailed the Trustee asking it for a quotation of the pension he would get if he claimed his benefits at age 60.

22 January 2019 Mr N wrote to the Trustee as he had not received a response to his email above.

25 January 2019 The Trustee replied to Mr N and apologised for the delay.

1 February 2019 The Trustee emailed Mr N and informed him that he would receive the quotation on 15 February 2019.

15 February 2019 The Trustee emailed Mr N confirming that the quotation had been sent. Mr N received the quotation the next day.

21 February 2019 Mr N signed the LOA for his IFA to obtain necessary information from the Scheme,

20 CAS-42076-Y7C6 with a view to transfer from another pension scheme.

25 March 2019 Mr N’s IFA informed him that it had not received a response from Phoenix.

21 CAS-42076-Y7C6 Appendix 3

“…

BENEFITS ON EARLY RETIREMENT

(a) for reasons other than ill-health:

If you are over age 50, you may, with the agreement of your employer, be able to draw an early retirement pension. The amount of the early retirement pension will be calculated as shown on page 5. The pension will then be reduced by an amount for each month by which your retirement is advanced. In respect of members who joined the scheme before 6 April 1997, no penalty will be applied if you retire, subject to employer consent, on your 60th birthday, or later….”

1. AMENDMENT OF THE SCHEME

Pursuant to the said Rule 22, the Trustees hereby make the following amendment to the Rules:

1.1 In Rule 1 Introduction and Definitions, the definition of “Normal Retiring Date is deleted and the following definition is inserted in its place:

“Normal Retiring Date” means:

(a) in respect of a Member who joined the Scheme before 17th March 1998, the 65th birthday calculated on the following basis:

(i) in respect of Pensionable Service from the Commencement Date to 16th May 1990, the Member’s 65th birthday for men and the Member’s 60th birthday for women, then

(ii) in respect of Pensionable Service from 17th May 1990 to 16th March 1998 (inclusive), the Member’s 60th birthday for both men and women, then

(iii) in respect of Pensionable Service on or after 17th March 1998, the Member’s 65th birthday for both men and women; or…”

22 CAS-42076-Y7C6 Appendix 4 Relevant sections of Trust Deed and Rules dated 16 September 2008

“…

8 IMMEDIATE PENSION BEFORE THE NORMAL RETIREMENT DATE

A Member may elect to receive the benefits, described in Rule 5.1, before his Normal Retirement Date, with the consent of the Employer:

(a) at or after age 50, or

(b) on account of incapacity due to permanent ill-health.

If the Member so elects, the Trustees shall, at the request in writing of the Member, make arrangements to provide pension for him and his Widow, Widower or Surviving Civil Partner of reduced amounts, as certified as reasonable by the Actuary to be equivalent to the value of the pensions provided under the Scheme in terms of Rules 12.3, 12.4 and 12.5 and Rule 6.1.2 of Appendix 1. Such reduction shall not, however, be applied if a Member, who joined the Scheme before 6th April 1997, retires, with the agreement of the Employer, on or after his 60th birthday…”

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