Overpayments and incorrect quotations — a change of approach from the Pensions Ombudsman?

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Pension scheme trustees are obliged to provide members with the benefits that they are entitled to under the governing documents of the scheme. Generally, where overpayments or over-generous quotes for benefits have been discovered, trustees must reduce benefits to the correct level and seek to recover overpayments already made.

While trustees may have great sympathy with the position of a member who may have made important financial decisions on the basis of incorrect information, trustees must administer the scheme in accordance with the provisions of the scheme and the law is not as favourable as one might expect it to be to members in these circumstances.

When an error has been made, the trustees will attempt to correct the situation, recalculating future benefits and reclaiming overpayments already made. For each of these, members could have a defence for retaining the status quo as follows…

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