Universities Superannuation Scheme · CAS-43910-C4R7

CAS-43910-C4R7

Ombudsman’s Determination Applicant Mrs E

Scheme Universities Superannuation Scheme (the Scheme)

Respondents University of Southampton (UoS) Universities Superannuation Scheme Limited (the Trustee)

Outcome

Complaint summary

Background information, including submissions from the parties The sequence of events is not in dispute, so I have only set out the salient points. I acknowledge there were other exchanges of information between all the parties.

Mrs E began employment at UoS in 1999 and joined the final salary section of the Scheme. Under this section, Mrs E had the option to pay a monthly additional voluntary contribution (AVC) to increase her pensionable service; known as added years.

In 2004, Mrs E completed an application form (the Form) to purchase an added years policy (the Policy).

The Policy stated that the AVC payments would be deducted from 1 May 2004 and cease on 2 February 2016. In total, Mrs E would purchase an additional five years and 76 days of pensionable service.

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3 CAS-43910-C4R7 Adjudicator’s Opinion

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Mrs E did not accept the Adjudicator’s Opinion and the complaint was passed to me to consider. I disagree with the Adjudicator’s Opinion and consider that the complaint should be upheld in part. I have noted the additional points made by Mrs E. Mrs E said that:-

• If the erroneous contributions were not deducted, she would have invested the funds in a Stocks and Shares Individual Savings Account (ISA). These funds would have had an annual rate of return of 8.2%. So, if the base interest rate is applied, she has suffered a financial loss.

• She is unable to provide any evidence of this rate of return, as she did not have the funds to open an ISA. The 8.2% is an average rate of return for an ISA.

• An award is warranted in her circumstances as she found the process time consuming and stressful.

Ombudsman’s decision

5 CAS-43910-C4R7 I uphold Mrs E’s complaint in part.

Directions

Anthony Arter

Pensions Ombudsman 28 March 2022

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