Pilots National Pension Fund · CAS-27382-Q6L3

CAS-27382-Q6L3

Ombudsman’s Determination Applicant Mr D, Mr McR, Mr Y, Mr W, Mr R, Mr NS and Mr S (the Applicants)

Scheme Pilots National Pension Fund (PNPF)

Respondent PNPF Trust Company Limited (the Trustee)

Outcome

Complaint summary

• The Trustee did not consider feedback from PNPF members before changing the accrual rate.

• The Trustee has acted in favour of higher earners to the detriment of lower earners.

• They have suffered a loss and they should be compensated with the option to retire at age 60 without any reduction to their benefits.

Background information, including submissions from the parties

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• To ensure consistency between members.

• To ensure contributions were affordable.

• To address member feedback from the previous consultation.

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“(1) The [Trustee] shall have the following powers:

(a) after consultation with the actuary, to alter, cancel or add to any of the provisions of the Rules or to adopt an additional set or sets of Rules provided that no such alteration, cancellation, addition or adoption shall be made which would prejudice Registration and that the requirements of section 67 of the 1995 Act shall be satisfied in relation to any such alteration, cancellation, addition or adoption.”

Adjudicator’s Opinion

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5 CAS-27382-Q6L3 The Applicants did not accept the Adjudicator’s Opinion and the complaint was passed to me to consider.

In particular, the Applicants emphasised that the reduction to their accrual rate removes the final element of parity between the terms they originally signed up to when they joined PNPF, and the terms under which they are now accruing benefits. They believe they should be compensated for this. They say that, unlike the post- 2002 members, they did not have a choice about joining the PNPF.

The Applicants also emphasised that they would have paid higher contributions in order to be able to continue accruing benefits at the 1/60th rate.

The Applicants’ further comments do not change the outcome. I note their comments but I agree with the Adjudicator’s Opinion.

Ombudsman’s decision

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I do not uphold the Applicants’ complaint.

Anthony Arter

Pensions Ombudsman 17 March 2021

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