Royal Bank Scotland Group Retirement Savings Plan · CAS-39893-Q6D6

CAS-39893-Q6D6

Ombudsman’s Determination Applicant Mr N

Scheme Royal Bank of Scotland Group Retirement Savings Plan (the Plan)

Respondent RBS Retirement Savings Trustee Limited (the Trustee)

Outcome

Complaint summary

Background information, including submissions from the parties

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“If you leave the Group with two years’ qualifying service, the full value of your account may be:

• left in the Plan where it will continue to be invested until you retire; or

• transferred to a new employer’s registered pension scheme; or

• transferred to a registered personal pension plan of your choice.

If you leave the Group with less than two years’ qualifying service you will be offered a transfer value of the full value of your account to take to another registered pension arrangement of your choice. If you do not complete the transfer within a specified time after leaving service, you will lose the right to this benefit.”

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4 CAS-39893-Q6D6 “As you have left the Group with less than 2 years’ qualifying service, it is possible for you to transfer the final fund value of your account to another approved arrangement. If you do not complete the transfer within 3 months, you will lose the right to this benefit.”

Adjudicator’s Opinion

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He argues that the Booklet’s wording is not clear on what the “benefit” is. He believes this benefit to be the right to transfer that he is entitled to.

He disagrees with the Adjudicator’s view that he should have contacted the Administrator for clarification. He was not unsure, he interpreted the wording in the Booklet as being that, in any event, he would not lose out on his pension.

The correct interpretation of the wording in the Booklet should have been explained during his exit interview with HR.

There is no evidence that the Administrator ever sent the letter as the letter had not been kept on its systems.

6 CAS-39893-Q6D6 He maintains he is entitled to his contributions of £13,251.87.

The Administrator should have contacted him via telephone or email not just a letter that he never received.

There needs to be “an updated contract with the lower salary renumeration and the actual benefit.” This is required by HMRC manual.

The complaint has now been passed to me to consider. I have noted Mr N’s further comments, but they do not change the outcome. I agree with the Adjudicator’s Opinion.

Ombudsman’s decision

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I do not uphold Mr N’s complaint.

Anthony Arter

Pensions Ombudsman 26 May 2021

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Appendix Rule 7 - Early leavers

7.1 Preserved benefits

A Member who leaves Service without becoming entitled to immediate benefits will remain entitled to benefits under the Plan if he or she satisfies the preservation requirements (see Rule 7.3 (preservation requirements)).

The Trustee will provide retirement benefits for the Member, as described in Rule 5 (Member's retirement benefits), on the Member's 65th birthday. However, the Member may choose to start receiving benefits from:

7.1.1 a later date (but not later than the Member's 75th birthday); or

7.1.2 if RBS consents, an earlier date (but not before the Member's 55th birthday, unless the Trustee is satisfied after receiving evidence from a registered medical practitioner that the Member is (and will continue to be) incapable of carrying on his or her occupation because of physical or mental impairment).

If the Member dies before starting to receive benefits under the Plan, death benefits will be provided as described in Rule 6.2 (benefits on death before retirement).

However, if RBS so directs, instead of providing benefits under the Plan, the Trustee will assure them to the Member by means of a transaction which satisfies the requirements of Regulation 6 of the Occupational Pension Schemes (Preservation of Benefit) Regulations 1991.

7.2 Members who are not entitled to immediate or preserved benefits

A Member who leaves Service without becoming entitled to immediate or preserved benefits may, regardless of the length of the Member's Qualifying Service, require the Trustee to provide a cash transfer sum in accordance with Chapter 5 of Part IV of the Pension Schemes Act 1993 (early leavers: cash )transfer sums and contribution refunds).

If the Member does not select this option within the period notified to the Member by the Trustee for this purpose, the Member will not receive any benefits under the Plan, except a refund of the proceeds of his or her own voluntary contributions (if any) less tax at such rate as applies from time to time. RBS may require the Trustee to use the balance of the Member's Retirement Account to meet any liability of the Employers to contribute to the

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7.3 Preservation requirements

“A Member satisfies the preservation requirements if:

7.3.1 the Member leaves Service with at least two years' Qualifying Service; or

7.3.2 a transfer payment in respect of the Member's rights under a personal pension scheme has been made to the Plan.”

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