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Principal employer's duties in considering a request for early retirement 2

United Kingdom
03/07/2001
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Reference: H00336

Mr Gaston alleged that some time in 1993 when he was aged 63, he had asked whether he could take an early retirement pension and was told "no chance" by Mr Brotherton who was a trustee and the personnel director. About the same time, Mr Brotherton started an early retirement pension aged 50. In February 1994, administrative receivers were appointed to the principal employer.

The Ombudsman determined that under the scheme rules, principal employer consent was required to retire early and the principal employer did not consent to Mr Gaston's retirement. The principal employer was entitled to consult its own interests in deciding whether to grant early retirements and therefore the complaint could not be upheld against it.

Comment
The case provides useful guidance on the ways in which employers can exercise the powers granted to them under pension scheme documentation. However, given the clear difference in the treatment between the two members, this decision should be treated with caution.





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