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Pensions Ombudsman upholds return of entire winding-up surplus to employer; high bar to challenge trustee discretion (Mr S, CAS-92093-N4D9)

Published on: 12 January 2024

Published by a LexisNexis Pensions expert
Legal News
Table of contents
  • Original news
  • Summary
  • What were the facts?
  • What was the PO’s decision?
  • What is the impact of this determination?
Article summary

Original news Mr S (CAS-92093-N4D9)—29 August 2023 Summary

The PO dismissed a grievance concerning the distribution of a full pension scheme surplus, on winding-up, to the employers. The trustee had followed the rules properly, weighed all relevant and material considerations and did not arrive at an irrational outcome. The PO’s decision underlines that overturning a trustee’s discretionary decision has a very high threshold. Accordingly, the complaint was not upheld by the Ombudsman in full

What were the facts?

Mr S belonged to the Bristol Water plc segregated section of the Water Companies Pension Scheme (the Scheme). Under the Scheme rules, the trustee had a discretion to use any surplus arising on a winding-up to enhance members’ benefits, with any remainder to be returned to the employers...

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