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Negligent retirement quotations: Pensions Ombudsman orders compensation after failure to apply temporary promotion pay rule; reasonable reliance led to early retirement and lost promotion in Firefighters’ Pension Scheme 1992

Published on: 29 October 2025

Published by a LexisNexis Pensions expert
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Original news Mr R (CAS-84083-M5S5)—3 July 2025

Summary

The Pensions Ombudsman upheld a complaint about erroneous information. A member opted to retire early, and in doing so lost the chance of promotion with a higher wage, having relied on incorrect retirement illustrations. The scheme owed a duty of care to avoid negligent misstatements. It was reasonable for the complainant to retire early in light of the figures provided. The case serves as a reminder that pension schemes should ensure retirement quotations are precise.

What were the facts?

Mr R belonged to the Firemen’s Pension Scheme 1992 (the Scheme). At first, any uplift in pay from a temporary promotion counted as pensionable pay. Later, regulatory changes altered the position so that such temporary increases ceased to be pensionable; instead, an extra pension benefit would be awarded in their place to members...

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