In Mr D Wilson (82081/1), the Pensions Ombudsman has awarded a sum of approximately £230,000 to a member of the Local Government Pension Scheme on the basis that, as a result of an incorrect valuation of his pension fund, he suffered loss of a chance to apply for a permanent job. Mr Wilson was incorrectly informed that he could, in case of redundancy at the age of 51, take an unreduced pension. In reality, if Mr Wilson was made redundant at age 51, he could not take an unreduced pension until the age of 65. On the basis of the incorrect information, Mr Wilson chose to not apply for a permanent job for which he was one of only two eligible candidates. Instead, he applied for an interim role where he would be made redundant at the age of 51.
The Ombudsman held that Mr Wilson had relied on the information provided by the managers of the scheme, Oxford County Council, in deciding not to apply for the permanent post. The Ombudsman calculated that, as there were only two candidates, Mr Wilson had a 50/50 chance of getting the permanent post. The Ombudsman awarded Mr Wilson half of his salary, including pension contributions, from the age of 51 to 65. This was to be capped at the sum in exchange for which Mr Wilson was prepared to give up his employment. This was the total of his predicted pension from age 51, his lump sum on retirement and his redundancy payment (estimated to be about £230,000 ).