Reference: K00382
The member left service in 1991. In 1995 he received a letter advising him that the scheme was to be wound up and that his GMP could be reinstated into SERPS. He was also quoted a transfer value and offered advice on deciding what to do. On the basis of that advice, which did not deal with his GMP, he decided not to transfer. He subsequently received a benefit forecast from DSS which showed his GMP was likely to be GMP 1,700 rather than the GMP 2,500 he had been quoted before it had been reinstated into SERPS. The difference arose because of the different methods of revaluation.
The member complained and claimed that had he been properly advised he would have transferred his benefits.
The Ombudsman said that the trustees were entitled to buy the member's benefits back into SERPS and transferring the benefits to another scheme would not necessarily have provided a better benefit for him. Although he had not been correctly and fully informed about his options, it was by no means clear that he had lost money through not transferring his benefits, especially as he had not yet retired.
Comment: The determination did not look at whether or not the trustees' actions in buying back the member's GMP into SERPS was appropriate given that their decision may result in him being worse off than if his GMP was secured through a buyout policy with an insurance company.
