Compensation Awarded Where Retirement Decision Based On Incorrect Pension Figures

If a pension scheme provides an incorrect benefit statement to a member who decides to retire based on that incorrect information, will the scheme manager be liable to the member? We take a look at a recent Pensions Ombudsman decision involving this scenario and consider what it tells us about the law in this area.

The Pensions Ombudsman has made a substantial financial loss award against a fire and rescue authority as manager of the Firemen's Pension Scheme 1992 in a case where the authority provided incorrect information to the member about his pension entitlement which resulted in the member retiring earlier than he otherwise would have done (Mr R CAS-84083-M5S5).

Background facts