Case study 2: pension entitlements on leaving service

The complainant was out ill when his employer announced a redundancy programme in 2003

The complainant was out ill when his employer announced a redundancy programme in 2003. He applied for and accepted the programme, which offered him a lump sum and an enhanced pension. He then applied for an ill-health retirement pension.

He was advised that the ill-health early retirement option was not open to him but the reason was not made clear. He received his lump sum. Subsequently, the medical officer of the pension plan turned down his request for an ill-health pension based on his GP's medical report. The complainant challenged this and produced a medical report from an independent consultant. The medical officer then revised his opinion, but the trustees chose to ignore it when addressing the complaint.

The Ombudsman found that the complainant was not entitled to both a redundancy package and a further ill-health pension, however he felt that he should have been given the option of choosing which of these options he would prefer. He instructed that he now be given this choice.