UK - English Welsh & Scottish Railway has been penalised by the pensions ombudsman for giving incorrect salary information to its scheme administrator.
Former EWS employee J. Foster complained of injustice when his pension was reduced following an overpayment.
Foster claimed he suffered financial loss, distress and inconvenience.
Based on information that EWS gave Railways Pensions Management Limited – the scheme administrator – Foster was entitled to a pension of £600 per week and a lump sum of £34,117.
However, one month after Foster started to receive his pension he was told the figure was wrong and Pensions Management made steps to claw back the overpayment.
EWS acknowledged that it provided incorrect salary information to Pensions Management, which led to Foster being quoted a much higher pensions than was due.
But EWS said Foster should have realised the benefits quoted to him were in excess of his entitlement because they were not in line with previous annual benefit statements.
Ombudsman David Laverick did not agree and directed EWS to pay Foster £250 for the distress caused by its maladministration.
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