Ian Young, with others,
made an application to the Pensions Ombudsman, looking for support in a
challenge to HP management’s interpretation of Discretion in awarding
pension increases - that application failed.
Nigel Bains is another of the
pensioners who made an application, and he says "My Application to the
Ombudsman was against both HP and the Trustees. I felt that, certainly
under both Digital and Compaq, there had been an established custom of
granting discretionary increases to pensions in payment, based on
financial affordability."
I certainly feel disappointed by the
decision, and feel let down by the process. Many pension scheme rules do
guarantee discretionary increases but the Digital scheme does not. So,
in the end, we have to accept the decision."
The team spent many hours researching
past practice, and produced communications from Digital and historical
Trustee Annual Reports in support of the claims, which confirmed that
this was the intention. In the end, the Ombudsman decided that there was
no such established practice, that HP are not obliged to provide
discretionary increases, and that the wording of the Pension Fund Trust
Deed supports HP's practice. No real mention was made of the evidence
HPPA produced.
Following these Pensions Ombudsman
determinations, our recommendation is that all Digital deferred
pensioners should consult a qualified Pensions/Financial Advisor before
drawing a pension from HP.
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Nigel
Bain’s full Determination from the Ombudsman is available
here
A
very personal account of what it was like to challenge HP through the
Pensions Ombudsman process, from Peter Reindorp is available
here
The conference note from
Councils opinion can be found
here
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