Turner Townsend Final Salary Pension Scheme · CAS-62617-C0Y2

CAS-62617-C0Y2

Ombudsman’s Determination Applicant Mr Y

Scheme Turner & Townsend Final Salary Pension Scheme (the Scheme)

Respondents Buck (the Administrator)

2020 Trustees (the Trustee)

Outcome

Complaint summary

Background information, including submissions from the parties The sequence of events is not in dispute, so I have only set out the salient points. I acknowledge there were other exchanges of information between all the parties.

Mr Y was a deferred member of the Scheme, a defined benefit occupational pension scheme.

Under Regulation 16 of the Occupational and Personal Pension Schemes (Disclosure of Information) Regulations 2013 (the Regulations), a deferred member of a defined benefit pension scheme must be given their NRQ within two months of requesting it.1

Under Regulation 20 of the Regulations, a member of a defined benefit pension scheme must be given their NRQ within one month of their pension becoming payable.2

On 4 February 2019, the Administrator received Mr Y’s request for a NRQ for retirement commencing in January 2020.

1 See the Appendix 2 See the Appendix CAS-62617-C0Y2 On 1 April 2019, Mr Y contacted the Administrator to pursue his request for the NRQ.

On 10 April 2019, the Administrator apologised to Mr Y for its delay in providing the NRQ. It said its delay in responding to his letter of 1 April 2019 was because the Scheme actuary was reviewing figures regarding his pension benefits. It said that Mr Y’s NRQ was being reviewed and would be issued on 15 April 2019.

On 15 April 2019, the NRQ was issued to Mr Y.

On 16 January 2020, the Administrator received a request from Mr Y for retirement forms and a revised NRQ.

On 22 January 2020, Mr Y emailed the Administrator, informing it that he had not received the revised NRQ.

On 24 January 2020, Mr Y's retirement forms, including the revised NRQ, were issued.

On 28 January 2020, the Administrator received Mr Y's completed retirement forms and progressed the settlement of his benefits. It sent Mr Y a letter stating the following:-

• It had paid Mr Y’s tax-free cash lump sum.

• Mr Y’s pension would be paid from 30 January 2020 and in advance.

• Mr Y’s first pension payment would be in his account by approximately 20 February 2020 and would include arrears backdated to his retirement date of 30 January 2020.

On 31 January 2020, Mr Y was paid his tax-free cash lump sum. His monthly pension commenced in February 2020.

On 24 February 2020, Mr Y sent the Administrator a formal letter of complaint about his retirement process. He said he had expected to receive his retirement forms by the end of 2019 but did not receive them until a few days before his retirement date. He said this left him little time to reply. He contended that if he had not pursued the forms and replied quickly, he would not have received his retirement forms before his retirement date. He requested £1,000 in settlement of his complaint.

On 27 February 2020, the Administrator sent Mr Y an acknowledgment of his complaint.

On 13 May 2020, in its full response to Mr Y’s complaint, the Administrator said it was unable to accept his request for redress. It said that although it could have managed his expectations better, it had provided his benefit quotations within the statutory timeframe. It said its delay in responding to Mr Y’s complaint of 24 February 2020 was due to “current circumstances”.

2 CAS-62617-C0Y2 On 29 May 2020, Mr Y sent the Administrator a further letter of complaint about his retirement process. The Administrator said it received the letter on 11 June 2020. Mr Y contended that his pension benefits were not quoted within the statutory timeframe. He said that The Pensions Advisory Service (TPAS) informed him that it is normal practice for a person to receive their retirement forms six weeks before their retirement date. He told the Administrator that TPAS also said a defined benefits scheme member who takes their benefits at their normal retirement age should receive their pension illustration automatically within one month of their pension becoming payable.

On 19 June 2020, in response to Mr Y’s complaint, the Administrator stated that although it did not provide Mr Y with the service it would have liked, it did not breach the statutory timeframe for quoting his benefits. It stated that under the statutory timeframe, it had until 28 February 2020 to issue the NRQ. It said that a full review of Mr Y’s case had been undertaken by the Scheme actuary and employees of the Administrator who had not previously been involved in his complaint. It said its delay in responding to Mr Y’s complaint was due to “current circumstances”. It rejected Mr Y’s complaint and informed him about the Scheme’s Internal Dispute Resolution Procedure (IDRP).

On 29 June 2020, Mr Y asked for the IDRP to begin. The Administrator sent him the full details of the IDRP.

On 1 September 2020, Mr Y sent the Administrator the completed formal application to invoke the IDRP.

On 15 October 2020, the Trustee informed Mr Y that his IDRP complaint was not upheld. The Trustee rejected Mr Y’s complaint on the basis that Mr Y had received the information requested within the statutory timeframe and was in receipt of the benefits to which he was entitled under the Scheme.

Summary of Mr Y’s position

The Administrator repeatedly failed to respond to his requests for information without his prompting, and sometimes then provided incorrect information.

He should be paid £1,000 in settlement of his complaint, in recognition of the distress and inconvenience he experienced.

Summary of the Administrator’s position

It could have managed Mr Y’s expectations better. It usually expects to respond to Scheme members, settle their benefits and issue their retirement packs more quickly. However, the delay in its response to his original complaint was partly due to the COVID-19 pandemic. It issued Mr Y’s NRQ within the statutory timeframe and provided his benefits in a timely manner. Mr Y suffered no financial loss.

It typically issues a quotation of a Scheme member’s retirement benefits three months before they reach normal retirement age. It did not do so in Mr Y’s case, as it 3 CAS-62617-C0Y2 had already provided him with an NRQ approximately nine months before his normal retirement age, in April 2019, in response to his request for a quotation.

It had completed a full investigation into Mr Y’s complaint and sent him two apology letters, which was adequate to settle his complaint.

Adjudicator’s Opinion

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Mr Y did not accept the Adjudicator’s Opinion and the complaint was passed to me to consider. Mr Y provided his further comments, which I have noted but they do not change the outcome. Mr Y said:-

• He is concerned that only the respondent’s timeline of events was considered by the Adjudicator. He contended that delays in the Administrator actioning his request for information in 2012 should have been factored into the Opinion outcome.

• It took almost eight months for him to receive a statement of his preserved pension which he requested in 2012.

• The Adjudicator’s summary of his complaint in the Opinion was too simplistic.

• He experienced serious distress and inconvenience because of the maladministration of the Administrator. Accordingly, an apology is not sufficient redress; the Administrator should pay him £1,000.

• He received the NRQ 11 days late; however, if he had not pursued it, he would have received it later.

• The fact that he received his retirement pack only a few days before his retirement date caused him to experience distress and inconvenience, as he had little time to reply.

• The delay in the issuing of the IDRP response was more than ‘slight’, especially as it was incomplete, inadequate and not impartial.

• His complaint was not handled in accordance with the Administrator’s complaints handling procedures; it was not handled impartially, thoroughly or fairly.

Ombudsman’s decision

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I do not uphold Mr Y’s complaint.

Anthony Arter CBE

Deputy Pensions Ombudsman 19 September 2023

7 CAS-62617-C0Y2 Appendix The Occupational and Personal Pension Schemes (Disclosure of Information) Regulations 2013:

Regulation 16

Statements of benefits: non money purchase benefits

16.—(1) The information mentioned in paragraph (2) must be given in accordance with this regulation where—

(a)the member has rights to benefits that are not money purchase benefits,

(b)the member requests that information, and

(c)information has not been given to that member under this regulation in the 12 months before that request.

(2) The information is—

(a)for active members, the information listed in Parts 1 and 2 of Schedule 5,

(b)for deferred members, the information listed in Parts 2 and 3 of that Schedule,

(c)for pension credit members, the information listed in Part 4 of that Schedule.

(3) The information must be given as soon as practicable but no more than two months after the date the request is made.

(4) In this regulation “pension credit member” means a person who has rights under the scheme that are attributable (directly or indirectly) to a credit under section 29(1)(b) of the 1999 Act (creation of pension debits and credits) or under article 26(1)(b) of the Welfare Reform and Pensions (Northern Ireland) Order 1999(1).

Schedule 5

Statements of benefits: non money purchase benefits

PART 1

Information for active members

1. The amount of any benefits (and how they are calculated) that would be payable on a date specified by the trustees or managers of the scheme if the member of the scheme were to die in service.

2. One of the following amounts, chosen by the trustees or managers of the scheme, of the member’s benefits and survivors’ benefits calculated without regard to possible increases in the member’s salary—

8 CAS-62617-C0Y2 (a)the amounts that would be payable from the date benefits are payable if pensionable service were to end on a date specified by the trustees or managers of the scheme,

(b)the amounts that would be payable from the date benefits are payable if pensionable service were to end on the member attaining normal pension age, or

(c)the amounts that would be payable from the date benefits are payable if pensionable service were to end on a date agreed between the member and the trustees or managers of the scheme.

3. The amount of the member’s pensionable remuneration on a date specified by the trustees or managers of the scheme.

PART 2

Information for active and deferred members

4. The date on which the member’s pensionable service started.

5. A summary of the method for calculating the member’s benefits and any survivors’ benefits.

6. Details of how any deduction from benefits is calculated.

PART 3

Information for deferred members

7. The date the member’s pensionable service ended.

8. The amount of the member’s benefits and survivors’ benefits payable from the date benefits are payable.

9. The amount of the member’s pensionable remuneration on the date pensionable service ended.

PART 4

Information for pension credit members

10. The amount of the member’s benefits and survivors’ benefits payable from the date benefits are payable.

11. A summary of the method for calculating the member’s benefits and any survivors’ benefits.

12. Details of how any deduction from benefits is calculated.

9 CAS-62617-C0Y2 Regulation 20

Second information on accessing benefits

20.—(1) The information mentioned in paragraph (2) must be given to a person in accordance with this regulation where benefit under the scheme has, or is about to, become payable to the person.

(2) The information is the information listed—

(a)in paragraphs 6 to 9 of Schedule 7, and

(b)in Part 1 of that Schedule where the person has an opportunity to select an annuity under any rights and options in relation to the death of the member.

(3) The information mentioned in paragraph (2)(a) must be given—

(a)where benefit becomes payable on or after normal pension age before benefit becomes payable, if practicable and in any event within one month after benefit becomes payable, or

(b)where benefit becomes payable on a date before normal pension age, within two months of that date.

(4) The information mentioned in paragraph (2)(b) must be given to the person having the opportunity mentioned in that paragraph before benefit becomes payable.

Schedule 7

Information to be given by schemes that relates to accessing benefits

PART 1

Information to be given to persons having an opportunity to select an annuity

1. A statement that the person has an opportunity to select an annuity.

2. A statement that the person has an opportunity to select the provider of the annuity.

3. A statement that different annuities have different features and different rates of payment including annuities that provide—

(a)the same payments every year,

(b)increasing payments every year,

(c)payments only for the person,

(d)payments for the person’s spouse or civil partner,

(e)a guarantee on the early death of the person.

4. Either—

10 CAS-62617-C0Y2 (a)an explanation of the characteristic features of the annuities referred to in paragraph 3, or

(b)a copy of guidance giving that explanation that has been prepared or approved by the Regulator.

5. A statement that the person should consider taking advice about which annuity is most suitable for them.

PART 2

Information on accessing benefits for members and survivors

6. The amount of benefit that is payable.

7. If benefit is payable periodically—

(a)any conditions for continuing to make the payments, and

(b)any provisions which would allow the payments to be altered.

8. Any rights and options that persons have on the death of the member or beneficiary of the scheme.

9. Any procedures for exercising the rights and options referred to in paragraph 8.

10. The provisions (or, as the case may be, a statement that there are no provisions) under which the pension payable to the survivor of a member or beneficiary of the scheme may or will be increased and the extent to which such increases are dependent on the exercise of a discretion.

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