University of Nottingham v Eyett 2

United Kingdom
13/11/1998
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Reference: (1999) PLR 17 and 25

Mr Eyett notified the University that he intended to retire in 1994 and did so. However, if he had delayed his retirement by a month, his pensionable salary would have been higher.

He complained to the Pensions Ombudsman that the University were guilty of maladministration in failing to advise him of this. The Ombudsman upheld his complaint and the University appealed.

The High Court reversed the Ombudsman's determination. The employer had not been guilty of maladministration in failing to provide information to enable the employee to appreciate that he would have received a better pension had he deferred retirement by just one day. The university was not in breach of the implied duty of good faith between employer and employee. An inadvertent omission to warn the complainant that he might be making a financial mistake in seeking to retire on the first available date after his 60th birthday did not breach that implied term.

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