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Pensions Ombudsman upholds PSO calculated as percentage of cash equivalent on valuation day; scheme could encash extra units after market fall (Mr S, CAS-30342–Z1B0)

Published on: 09 October 2024

Published by a LexisNexis Pensions expert
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Original news Mr S (CAS-30342–Z1B0) – 2 July 2024

Summary

The PO has dismissed a complaint concerning a PSO. The PSO was correctly determined at the valuation date as a fixed percentage of the complainant’s cash equivalent transfer value. As the scheme’s unit prices fell after the valuation date, the administrators were right to cash in additional units to ensure the same monetary amount, as calculated at that date, was transferred to the ex-spouse’s pension arrangement. The PO’s decision highlights the challenges that can arise even when there is only a short delay in implementing a pension sharing order.

What were the facts?

Mr S was a member of the Fidelity Master Trust–Sytner Group Retirement Plan Section (the Scheme). A Pension Sharing Order (PSO) was issued against Mr S’s Scheme benefits. Section 29(2) Welfare Reform and Pensions Act 1999 (WRPA 1999) provided that: “Where the relevant order specifies a percentage value to be transferred, the appropriate amount …. is the specified percentage of the cash equivalent of the...

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