The Pensions Ombudsman siding with Pilots’ trustee on accrual rate changes

Geoff McKenzie, Senior Trustee Manager at Ross Trustees, said the decision showed that the “trustee firstly fully considered its powers under its trust deed and rules, and took relevant legal and actuarial advice from its appointed advisers on the options being considered”.

“As was noted, the trustee then followed the required consultation requirements for benefit changes of this nature and considered the member feedback before reaching a final decision,” he said.

“Finally, and probably most key, the decision-making process throughout, including its deliberations and consideration of all options, was comprehensively captured and documented,” he said.

“Although most trustee boards do get the relevant professional advice for these types of decisions, I think this case particularly highlights the need to document the process followed, in the event of a future challenge.”

This article was first published in Pensions Expert, April 2021