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United Kingdom

Pensions Ombudsman upholds employer’s refusal of discretionary RPI increase beyond 5%; no breach of Imperial duty where decision had regard to scheme finances (Mr Y, CAS-99766-L5X6)

Published on: 16 September 2025

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

Original news Mr Y (CAS-99766-L5X6)—30 April 2025

Summary

The Pensions Ombudsman dismissed a grievance concerning discretionary uprating of pensions. A scheme newsletter had explained its intention to award RPI-linked rises, capped at 10% for members. The employer declined to approve inflation‑matching uplifts, arguing this was necessary to safeguard the Scheme’s long‑term financial position and stability. The Ombudsman concluded that the Scheme had applied the governing rules appropriately and in accordance with them. It further decided the employer’s refusal to grant any uplift was neither perverse nor irrational in the circumstances. The decision underscores the importance of robust due process whenever such determinations are made.

What were the facts?

Mr Y was a member of the Smiths Industries Pension Scheme (the Scheme)...

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